Corporation and LLC w/ Same Tax ID#

Answered by:

Question:

We have a business customer that has a corporate account with a tax ID#. He is also a member/manager of an LLC that uses the same tax ID as the Inc. Both the Inc and the LLC have been filed with the state of WY. He is making deposits into the Inc. account but some of the checks are made payable to the LLC and some to the Inc. I thought that if you have an LLC and Inc. you would have to have a separate account for each entity. The customer tells us that he does not need a separate account as the LLC account conducts all business and operations through the corporate account. Is this a true statement?

Answer:

Answer by Randy Carey: It depends. The LLC would have to be a disregarded entity from a Federal tax perspective.

Answer:

Answer by John Burnett: And even if it is a disregarded entity, it has a separate legal existence. Checks payable to one should not be deposited to an account of the other without appropriate authority and endorsement.

First published on BankersOnline.com 12/12/11