Comments on: Rental Property 101: 10 Steps to Setting Up Your Business http://www.justonemoreyear.com/rental-property-101-10-steps-to-setting-up-your-business/ One couple's story of escaping 9 to 5 until 65 Wed, 20 Jul 2016 17:22:09 +0000 hourly 1 https://wordpress.org/?v=4.5.11 By: Bryan http://www.justonemoreyear.com/rental-property-101-10-steps-to-setting-up-your-business/#comment-394 Thu, 26 Nov 2015 15:25:25 +0000 http://www.justonemoreyear.com/?p=986#comment-394 Thanks for the feedback ARB! You are right about the need for insurance – my plan is to touch upon that topic in a later article.

I was unaware that bankers want to see proof of doing business first before they will setup bank accounts. In my earlier days of land lording, I was amazed at how many tenants did not have any bank accounts at all. They seemed to think they could not afford them or maybe they did not understand how simple it is to setup. Weird! Certainly, something you deal with every day.

It just goes to show how much things have changed over the years -just like the internet and creating a website. For the last 10 years, we have used a property manager that maintains their own website and systems to manage our properties.

I thought your article on purchasing checks was very informative and provided value to our readers. I hope you have to add another server to your site to handle the increased web traffic. 🙂

Happy Thanksgiving!

]]>
By: ARB http://www.justonemoreyear.com/rental-property-101-10-steps-to-setting-up-your-business/#comment-393 Tue, 24 Nov 2015 08:14:22 +0000 http://www.justonemoreyear.com/?p=986#comment-393 Bryan,

These are certainly great tips for anyone looking to start a rental business, or really a business of any sort. Setting up a web presence in the 21st Century is now a requirement if you want your business to succeed; even rinky dink little mom and pop stores now have a website. As for the type of business, I’d personally recommend an LLC and buy general liability and E & O (errors and omissions) insurance. This way, in case things go HORRIBLY wrong, your personal assets are never up for grabs from creditors and lawsuits.

As for opening up a bank account, I would wait until you have the property before trying to open an account. Nowadays, the business formation documents simply aren’t enough and many banks will need to you to provide proof that you are doing business (either by bringing in a utility bill in the business’s name or either an invoice/receipt that you’d give a client/customer or showing that you bought something related to the business). Sounds like a pain, but it’s what the banks require in order to maintain compliance and avoid losses. You wouldn’t believe how many people come to me claiming to sell cars and manufacture clothing lines out of their apartments. This can probably be streamlined by opening your business account in the same place you get your mortgage.

And definitely open two bank accounts. I love how new business customers walk in and tell me that they don’t have enough money for two accounts. Then perhaps you don’t have enough capital to start a business, hmm? Like with personal accounts, your business accounts should be linked together with overdraft protection, allowing you to avoid spiraling out of control with overdraft fees once unforeseen business expenses start popping out of your account.

Thanks for publishing this, Bryan. And thanks for putting in a link to my blog. Business checks can be VERY expensive, and the affiliate link I have in my article allows you to buy them at heavily discounted prices and save a ton. I have customers at my desk all the time complaining and I WISH I could just provide the damn affiliate link to them without there being some sort of conflict of interest.

Sincerely,
ARB–Angry Retail Banker

]]>