LLC: TIN or SSN?

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Question:

I have a customer who has an LLC set up with one owner. They would like to use their own social security number. Would I set this up any differently? Do I use his name or the name of the LLC first on our computer system? I was concerned with the interest reporting.

Answer:

Answer by Mary Beth Guard:

You can set up the LLC account with the owner's social security number as the TIN if there is just one owner. To get a match for IRS purposes, you would need to style the account, "John Doe, Member, Doe LLC"

Answer:

Answer: by John Burnett

Your closing statement concerns me: "I was concerned with the interest reporting."Please be certain you are not opening a NOW account for this LLC. A one-member LLC is very much like a one-person PC (professional corporation). It's not a sole proprietorship (and using the member's SSN doesn't change the facts).

First published on BankersOnline.com 04/07/03