Sole Proprietor Using EIN to Open a Now Account

Answered by:

Question:

Sole proprietorships using their SSN can open NOW accounts, but can a sole proprietorship using a EIN also open a NOW account?

Answer:

Answer by David Dickinson:Yes. Just because they have an EIN doesn't make them not a sole proprietor. If they are a sole proprietor, they can have a NOW.

Answer:

Answer by John Burnett:Do take care to title the account in the name of the individual rather than the fictitious name of his or her business. The EIN is issued in the sole proprietor's name and you will want to make sure you have a name/TIN match at year-end interest reporting time. Also, be aware that although a sole proprietorship with employees may have an EIN, the IRS prefers (does not mandate) that the sole proprietor supply his/her SSN on form W-9 when opening a bank account. The SSN is the number you must obtain for CIP purposes since the owner of the account is the individual.

First published on BankersOnline.com 8/18/08