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No Formal Partnership Agreement b/w 3 Entities

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Question: 
I have a group of customers who want to open a business account. The account owners will be a Partnership (with a partnership agreement with accompanying EIN) and two individuals. There is no formal partnership agreement amongst these three entities (Partnership, Individual A, Individual B). Would this be classified as a partnership, and what EIN should be used?
Answer: 

At most, it's a "joint venture." The term is generally used to describe a temporary union devoted to a single project; e.g. a corporation and a partnership join together in the development of a shopping mall.

Just because your customers can make something up, that does not mean your bank is required to go along with it. The people on both sides of the desk really need to know what they are doing.

First published on 06/10/2018

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