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Disregarded Entity - Account Registration

Good morning, all. I am a single owner member of an LLC and use my SSN for reporting. My brokerage firm tells me that the only way to avoid the "B" Notice/Backup Withholding issue is to register the account with my individual name on the first line (i.e., John Doe, Acme LLC). They say that the first line name must match the reporting TIN with the IRS records and that the fact that it does not is what generates the IRS to notify them of the "incorrect" number. Seems to me I should be able to file something with the IRS such that the IRS knows that my LLC is a disregarded entity rather than me having to use my individual name on the account. Any insight? Thank you!

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Reply to
Bluezfan
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Well yes.

The brokerage firm is quite correct and I can't see where it matters one bit. And if they list it on 1099 reporting as "John Doe, Acme LLC" that still won't match. A 1099 form should thus list John Doe on first line and second line contain the t/a designation: "Acme LLC" then of course two lines for the address. However even putting all on first line might be enough to match if the big IRS computer in the sky matches on just the first, say, 12 letters of a name. I dunno. ChEAr$, Harlan Lunsford, EA n LA

Reply to
Harlan Lunsford

Yes. Get an EIN for the LLC and put that number in the appropriate space on Schedule C.

Reply to
Bill Brown

The name and the SS# must match. On Schedule C, the lines request the name of the sole proprietor and the fictious name, as does the W-9 which your brokerage firm requests. You may find this article useful:

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Reply to
John H. Fisher

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