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Single-member LLC bank account question

I bought a home that I am renovating and will be renting out. At the suggestion of an attorney, I formed a single-member LLC and transferred the property from my name into the name of the LLC for liability reasons.

I obtained a federal tax ID number for the LLC when it was formed, and I showed it as a disregarded entity. I have not yet set up a separate bank account for the LLC. So, for now, I am paying LLC expenses out of my personal bank account, but I do have an accurate record of which expenses are for the LLC. I assume that I would be better off setting up a separate bank account for the LLC as soon as possible. For now, none of the LLC expenses for the property are deductible because it is not yet available for rental (I expect it will be in January or February of 2007).

My question is, in the meantime, will it be a problem in terms of my tax returns for 2006 that I do not yet have a separate account for the single-member LLC?

Reply to
BETA-32
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"BETA-32" wrote

It's no problem. A separate bank account for that entity, while important, isn't something that causes problems in and of itself.

Reply to
Paul Thomas, CPA

Thanks. I was hoping that was the case.

Reply to
BETA-32

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