What is Entity Management?
Continuing our article on "Understanding Business Entities," our entity management feature found within TurboTenant allows you, as a landlord, to set up your ownership structure(s) accurately. Doing so primarily benefits the flow of funds if/when you're collecting payments through TurboTenant. So, if you're a landlord using multiple LLCs to own and manage your properties or if you're managing properties for yourself and others, this feature is for you.
What are the primary benefits?
Accurate 1099-K: Payment information will be accurately reflected on an entity basis. Meaning, at the end of the year, when/if a 1099-K is generated, your 1099-K will be created based on the payments to the specific entity (individual, company).
Uninterrupted Flow of Funds: A common issue right now is landlords moving money to more than one entity, whether another individual or another LLC they own, are commonly flagged for potential security issues. This requires investigation by our security team to make sure that we understand ownership and are complying with federal laws. Commonly deposits are prevented during our investigation. With the ability to accurately reflect ownership in TurboTenant now, the likelihood of that occurrence should drop significantly.
How do I add additional entities?
Please note, that you must first set up rent payments before you'll be able to access the following functionality. Also, if you're a non-premium user, you'll have to upgrade to a premium before being able to an additional entity.
Log into your account and navigate to account settings
Specifically the rent payments tab
Enter the required information and click
add entityto successfully create the new entity
After the successful creation of a new entity, you can add a bank account specific to this entity by clicking
add a bank account
This functionality will only be available to premium subscribers.
How do I edit an entity?
What happens if you incorrectly enter information during entity creation? You can click on
entity settings. After account password confirmation, you can edit any information except for the SSN, TIN, and Company name. If you need to edit one of these fields don't hesitate to contact TurboTenant Support to do so.
How do I remove an entity?
If you need to remove an entity from your account, similar to editing, you'll click on
entity settings , and after scrolling to the bottom of the edit form you'll see the button to
remove entity. Just so you know, if you remove an entity, any charges (or pending deposits) currently assigned to this entity's bank accounts will be automatically assigned to the oldest existing entity until you change the charge assignments.
Of note, the first entity created when setting up rent payments cannot be deleted at this time.
How do I use my entities after I add them?
Once you've set up all your entities, similar to how unlimited bank accounts function today, you'll assign your charges to a bank account associated with the entity of your choice.
Still have questions? Reach out to our team at [email protected] for additional assistance.