LTC...How many Bank Accounts?

[richard56]

Hi
I already have my LTC up and running and I have one bank account open that I am using as the LTC's working account.

Now first question....should that account have been set up in the name of the LTC?
At the moment it is just a Westpac business account that I tagged on to all my other personal accounts.

Second question...I will shortly be getting an RCF in the name of the LTC . This RFC is guaranteed by me against my personal home.
Should the RCF have it's own account or should I just close the original business account and use the RCF as my LTC's working account.

Thanks
Richard

[Keys]

Your accounts should be in the name of the LTC.

Your choice on one or two accounts though.

[Perry]

Your accounts should be in the name of the LTC.

What's the rationale, Keys?
Just curious.

[One]

You want to put all your business' income into the RFC, to reduce the interest you pay. I'd go for just the one account.

[Keys]

What's the rationale, Keys?
Just curious.

For me it is simplicity.

All of my accounts which are personal have me on the address and top of the statement. All company accounts have the company there. No confusion. No trace of tainting. Easier to mange. Easier to keep separate.

[Perry]

Right. I do know you use appropriate software for the PM chores.
I use Quicken to manage the Trust, the rentals and private items.
So "keeping things separate" is easy with software to keep track
of everything and allocate them appropriately. (So long as I rem-
ember to code them properly!)

Sometimes there are advantages such as the differing conditions
which pertain to credit cards and mortgages if they are 'attached'
to a business entity, as opposed to a personal entity.