Responsible Party Name and Tax ID on SS-4 for My IRA LLC

[Andrew Yu]

I have an IRA account with uDirect IRA. Later I realized it doesn't allow account holders to sell what they don't own. So I can't do wholesaling with my IRA account. I decided to create my IRA owned single member LLC, so I can have checkbook control. My IRA's full vesting name is <account_holder_name>, Legal Owner Via Non-Trust Custodial IRA With AET, which is the sole member of the LLC. I created the LLC as such.

The part I'm confused is the Responsible Party on SS-4 form of IRS. My custodian doesn't allow my IRA's full vesting name to appear as Responsible Party. Only <account_holder_name> IRA is allowed... I'm fine with that. 

Then their attorney told me to use my own social security # as the Responsible Party's tax id... But shouldn't the Responsible Party's tax id be my IRA's tax id? I mean my IRA is the owner of the LLC after all, not me.

[Carl Fischer]

@Andrew Yu

I would use your social security number as you are the one the IRS or anyone else will go to if they want info on the LLC. You used to be able to have a cpa or attorney get the TIN for the entity and have anonymity. However after 9/11 they changed the law and said that who ever gets the the TIN needs to be a responsible party and understand what and how the entity works. Part of CIP customer identification process and the patriot act. Anti terrorism, anti money laundering, protection. So I believe the attorney was correct. You can still have your cpa or attorney get the TIN but they should use your SS # as the responsible party. It won't be a "prohibited transaction" as you are only the decision maker for LLC. You may also want a TIN for your Ira If you are doing wholesaling that would be considered a "trader business" and UBIT would apply. Reference irs form 990t instructions and/or work with your CPA— again that would use your SS# as the responsible party. We have reviewed this with many CPAs and attorneys.