Click on the tabs below for information on Limited Liability Company (LLC) accounts.
For business CIF requirements, click here.
For Opening a New Limited Liability Company account, click here.
Definition
A Limited Liability Company (LLC) is a business owned by one or more individuals. The LLC is a legal entity and is a cross between a partnership and a corporation. For income tax purposes, the LLC is more like a partnership and its members' personal liability is limited like a corporation. The LLC may consist of a single member or multiple members.
LLC Classifications
- Single Member (Sole Proprietorship) - business has one owner
- Partnership - business has two or more owners
- C Corporations - for financial privacy to keep business income from appearing on one's personal tax returns
- Good for an individual or family with high medical expenses
- S Corporation - an active business
- To save self-employment tax (consisting of Social Security and Medicare) on distributions to the shareholders
Required Documentation to Open Account
Obtain all of the following:- Articles of organization (by state of incorporation). Note: Articles of organization MUST contain ALL pages listing managing members.
- Alabama -- from client
- Florida -- from client or FL state site
- Georgia -- from client or GA state site
- Verification of active status from the state (print and attach for new accounts)
- For revised accounts:
- Signed and notarized CCB business affidavit
Click here to access the Business Affidavit Reference Guide.
See Reviewing Business Legal Documents for more information.
Tax Identification Number (TIN)
Single Member LLC
The member's social security number (SSN) or an employer identification number (EIN) is used for IRS reporting. Also called a sole proprietorship.
Multiple Member LLC
The LLCs employer identification number (EIN) is used for IRS reporting. Also called a partnership.
C Corporation
The LLCs employer identification number (EIN) is used for IRS reporting.
An LLC can be taxed as a C Corporation by completing the Entity Classification Election IRS Form 8832, and electing Corporation as the taxation status.
S Corporation
The LLCs employer identification number (EIN) is used for IRS reporting.
An LLC can be taxed as an S Corporation by choosing the Corporation election on the Form 8832. The IRS tax form 2553, Election by a Small Business Corporation, is filed with the IRS. All owners of a Limited Liability Company taxed as an S Corporation must be US citizens or resident aliens. The tax year end must be December, unless by rare exception.
Account Titling
LLC using Social Security Number
- Title the account in the name of the sole-proprietor. Client's name auto-populates in the Customer Name field.
- In the Additional Name 1 field enter the LLC business name. (For example: D/B/A Financial Education Services, LLC)
Single/Multiple Member LLC using EIN
- Title the account in the name of the LLC. Client's name auto-populates in the Customer Name field.
Ownership Requirements
- The LLC officer/agent signs the signature card.
- A signature card with the LLC officer/agent signature above his/her name in the Signatures section is required.
- The resolution requires ALL signatures on lines A - F.
- For single/multiple member LLC using EIN, the additional officer(s)/agent(s) MUST attest to the opening of the account by signing the bottom of the resolution.
Signature Card Example
LLC using Social Security Number
Single/Multiple Member LLC using EIN
