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#2137346 - 07/10/17 02:08 PM Help! Multi Member LLC using a SSN Number
Irishguy Offline
Platinum Poster
Joined: Aug 2008
Posts: 571
First and foremost, I know the "right" answer is that we probably need to get legal counsel involved. However, I was wondering if anyone has run into this before and what can be done to "correct" the issue that I've discovered.

We have a multi-member LLC that is using the SSN numbers of one of the members when opening accounts. From what I can tell, the LLC has always been a multi-member LLC. We have both depository accounts and loan accounts that have been opened using the SSN number of the member.

According to the IRS, only a single member LLC can use a SSN number. My question is can we just file maintenance these accounts using a TIN or do the accounts need to be closed and new accounts opened using the correct TIN?

FWIW, I don't believe any fraud was going on, but I believe this was a lack of training on our part in which the CSR/Loan Officer did not understand the documentation they were required to obtain. Any help would be appreciated!!!

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#2137422 - 07/10/17 07:16 PM Re: Help! Multi Member LLC using a SSN Number Irishguy
osucpa Offline
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Joined: May 2011
Posts: 1,398
I would just file maintenance.

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#2139374 - 07/25/17 01:41 PM Re: Help! Multi Member LLC using a SSN Number Irishguy
BuckDog Offline
100 Club
Joined: Jun 2006
Posts: 123
I would send a W-9 form and request them to provide and certify the correct tax id for the LLC. After receiving, then do a maintenance on all accounts affected.

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#2139392 - 07/25/17 02:27 PM Re: Help! Multi Member LLC using a SSN Number Irishguy
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,408
Cape Cod
Make it clear in your notice to the LLC that you need its Employer ID number on that W-9, not the SSN of a member. Some of these folks don't seem to get or pay attention to the advice they should be getting from their accountants. Unfortunately, the optimal time to get the EIN is when the first account is being opened (when you can leverage the ability to say "No.") Now, your only leverage (aside from nagging) is the implicit threat to toss out the account(s), which is most likely not something you'd want to do.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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