Answer:
Let's assume the project is the "Eastland Strip Mall" and the parties to the joint venture are "Amcore, Inc." and "Flexan, LLP." Also, please note a joint venture is not a legal entity, just a temporary arrangement between multiple entities.
My suggestion for the account title is "Flexan, LLP and Amcore, Inc., Eastland Strip Mall, joint venture." You will need EINs from both organizations, but set the account up where Flexan's would be used for any information reporting. (Amcore, as a corporation, is probably not subject to information reporting, but information reporting would be an unlikely event anyway as a joint venture is not eligible for a NOW account.)
You need a resolution from each entity authorizing the opening of the account, with the specific account title, and naming the authorized signers. They do not each name their own; they each name all signatories, including those who are employed by the other organization. You would also need documentation from each entity; e.g. evidence of existence, as if they were opening an account in their own company's name.
Implicitly, I am saying the joint venture does not need its own EIN, or more accurately, I am saying you should not insist upon it. I lack the expertise to help your customers make that determination. If there is any doubt, they need to resolve it by talking to their tax preparers. If they come in with an EIN unique to the joint venture, retitle the account with the name of the joint venture first and the names of the entities second.
First published on BankersOnline.com 2/21/05
print
share