Loan to SMLLC without an EIN, using member's TIN

Posted By: CML LHS

Loan to SMLLC without an EIN, using member's TIN - 02/07/20 05:33 PM

We have an SMLLC that holds real estate, but is a disregarded entity under a Living Trust (complex trust), and does not have an EIN. Can I still make the loan to the SMLLC but using the trust's EIN? Or is this similar to a sole proprietorship where the borrower should be the proprietor (in this case the trust), and the grantor/collateral owner is the SMLLC?
Thank you in advance for your advice!
Posted By: rlcarey

Re: Loan to SMLLC without an EIN, using member's TIN - 02/07/20 06:27 PM

I would be treated like any other SMLLC. If the trust is treating it as a disregarded entity, you would use the trust's EIN for the loan to the LLC.
Posted By: CML LHS

Re: Loan to SMLLC without an EIN, using member's TIN - 02/07/20 07:15 PM

So to confirm, the borrower is the SMLLC using the EIN of the trust. The W9 they sign reflects the SMLLC and the Trust EIN. Then opening the checking account I can use that EIN for the SMLLC also. What if I already have a checking account for the Trust? Same EIN and two different names/customers?
Posted By: rlcarey

Re: Loan to SMLLC without an EIN, using member's TIN - 02/07/20 08:38 PM

No different than me, who has Carey Consulting LLC which is a disregarded entity. My LLC has no EIN and it uses my SSN.
Posted By: CML LHS

Re: Loan to SMLLC without an EIN, using member's TIN - 02/07/20 08:49 PM

Perfect! Thank you so much!!