We recommend titling the account in the LLC’s name, since the LLC is a separate entity from the member and the funds belong to the LLC, not to the member.

The IRS requires a single-member LLC that elects to be treated as a corporation, has any employees, or will be required to file any excise tax forms to obtain an employer identification number (EIN). Absent an indication from the customer that any of these conditions exist, we believe the LLC account can be opened with the social security number of the sole member. However, in case you have to file tax forms for this customer, it may be prudent to require an EIN at account opening, and if the customer has not obtained an EIN from the IRS, to ask them to do so.

For resources related to our guidance, please see:

• IRS, Limited Liability Company (LLC) (“Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return (a ‘disregarded entity’). . . . For income tax purposes, an LLC with only one member is treated as an entity disregarded as separate from its owner, unless it files Form 8832 and elects to be treated as a corporation. However, for purposes of employment tax and certain excise taxes, an LLC with only one member is still considered a separate entity.”)

• IRS, Do You Need an EIN? (“You will need an EIN if you answer ‘Yes’ to any of the following questions. . .  Do you have employees? . . . Do you operate your business as a corporation or a partnership? . . . Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?”)

• IRS, Single Member Limited Liability Companies (“For federal income tax purposes, a single-member LLC classified as a disregarded entity generally must use the owner’s social security number (SSN) or employer identification number (EIN) for all information returns and reporting related to income tax. For example, if a disregarded entity LLC that is owned by an individual is required to provide a Form W-9, Request for Taxpayer Identification Number (TIN) and Certification, the W-9 should provide the owner’s SSN or EIN, not the LLC’s EIN. . . . A single-member LLC that is a disregarded entity that does not have employees and does not have an excise tax liability does not need an EIN. It should use the name and TIN of the single member owner for federal tax purposes. However, if a single-member LLC, whose taxable income and loss will be reported by the single member owner needs an EIN to open a bank account or if state tax law requires the single-member LLC to have a federal EIN, then the LLC can apply for and obtain an EIN.”)