We have some escrow agent accounts that we are trying to figure out the best way to title. We have a third party company acting as escrow agent with a sole member LLC as the beneficiary using the sole member's SSN as the LLC's tax ID number. Does the sole member need to be named in the title? If so, how should the title read?

For IRS reporting purposes, I believe your account title would need to match the W-9 requirements.

e. Disregarded entity. For U.S. federal tax purposes, an entity that is disregarded as an entity separate from its owner is treated as a “disregarded entity.” See Regulations section 301.7701-2(c)(2)(iii). Enter the owner's name on line 1. The name of the entity entered on line 1 should never be a disregarded entity. The name on line 1 should be the name shown on the income tax return on which the income should be reported.

Thank you, Dottiec.