Something doesn't seem right about a business customer that came in yesterday. Here is the scenario:

John Doe owns ABC Cleaning. ABC Cleaning has a separate TIN. John comes in on Tuesday with revocable trust papers and wants to open an account titled "JD Family Trust D/B/A ABC Cleaning" under the TRUST'S TIN.

Something doesn't seem right about the structuring of this account where ABC Cleaning already has their own TIN. John's SSN is not being used in any of these transactions. Can we open an account titled like this where the business already has a TIN?

Is my operational mind going haywire or is there some warrant to my suspicions?

Thanks!!

I thnk you should check with counsel. However, a family trust can own a business, and it can operate under a tradestyle or fictitious name. Apparently, Doe obtained an EIN for the business since he has employees. If the business was a sole proprietorship, he could legitimately have given you either his SSN or the EIN for your records (although the IRS prefers the SSN route). It now appears that Doe has started a family trust and is moving his business and perhaps other assets into it. Again, that's a legitimate move, as far as I know.

If all is I have surmised, I see no reason you can't accept the trust's EIN for the business account, but make sure that the business shows on your records as the owner of the account.