Answer:
No, an LLC (even a single-member LLC) is not a sole proprietorship (even though the IRS allows a single-member LLC to use the member's SSN as its tax ID number). Also, the Fed has released a copy of a letter it sent to the Tennessee Department of Financial Institutions, in which FRB offers its legal opinion that LLCs are not eligible to hold NOW accounts. _________________________
First published on BankersOnline.com 12/11/06