Hi all, I'll try to explain the situation where I'm the best I can... We've two companies in the USA one is an INC and the otherone a LLC. INC is 100% owner of the LLC and for fiscal/taxes issues they work on a consolidated basis, both under the same umbrella. Now, we'll close the LLC bank account and the idea is that it will work under a second bank account that INC owns. Also the LLC will invoice to his customers and will receive vendor invoices that will be collected/paid using INC second bank account founds. Is that possible? Is possible to book the movements of INC second bank account on LLC books? Can we have any kind of legal/
One bank account two companies (INC & LLC)
Answers
The answer is can you do it, you can do anything, the question is it legal, to GAAP, etc., etc.
Issues:
It may be very confusing to your vendors.
The bank may refuse to do it. - they don't like 3rd party checks, which this will be.
Your clients may scratch their heads why your are having payments go to a 3rd party.
You'll still need to make all the entries and then additional entries for the inter-company account.
There are legal issues here (talk to your General Counsel).
There are probably IRS and Auditing issues (talk with your GC/Audit firm).
My advice, is have a bank account for each corporation. If one company needs an inter-company loan, make it, otherwise just do two bank recs.
You need to have an account for each entity.
Do yourselves a favor and keep a bank account at each legal entity and avoid all of the risks (tax, GAAP, RAP, etc).