IBA Compliance Connection

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A customer is one of two organizers of an out of state LLC. The papers she provided to us do not contain an employer identification number (EIN). Can she open a business account for the LLC using her own name and social security number, and use a “doing business as” (d/b/a) to include the name of the LLC?

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No, we do not recommend opening a business account for the LLC using the customer’s individual social security number instead of an EIN.

The IRS requires an LLC that has employees or that has elected to act as a corporation or partnership to obtain an EIN. In this case, your customer has not indicated that her LLC does not have employees or has not elected to act as a corporation or partnership. Absent information to the contrary, we believe it would be prudent to require her to provide an EIN to open a business account for the LLC.

For resources related to our guidance, please see:

  • IRS Website, 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?”)