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Add Beneficiary to Business Sole Prop w/SS#?

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Question: 
Can beneficiary be added to a business account that is set up as a sole proprietorship and using the individuals social security number on the account?
Answer: 

The IRS has stated its preference that sole proprietorship accounts be set up using the owner's Social Security number even if the owner has obtained an Employer ID number for payroll purposes. However, the number used as the Taxpayer ID number on the account is irrelevant to your question. State law will determine whether such an account can be designated as a Payable on Death (POD) account or Totten trust (ITF) account.

First published on BankersOnline.com 10/22/12

First published on 10/22/2012

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