All Forum Posts by: Jim Biggs

@Jason R. @Kumar Paj one of the issues with getting individual EIN and one reason I like a series  is that you can  file one tax return .  Potentially saving a great deal of money, but not if each llc under the series has its own EIN which many lawyers will advise to keep from piercing the corp. veil.

excerpt from atty Bradley Clark

"When applying for an employer identification number (“EIN") on IRS.gov you must provide the legal name of the LLC that is applying for the EIN. The dilemma presented to applicants is that the name of the LLC on file with the Texas Secretary of State (and the one that should therefore be used) will not match the name of the particular series for which you are applying for an EIN. And if you have multiple series inside the LLC you will not be permitted to use the name of the LLC on subsequent applications for additional series.

For example, if the legal name of the LLC is MY COMPANY, LLC, a Texas limited liability company, then the legal name used for the EIN application is MY COMPANY LLC [notice the comma was omitted on the EIN application as IRS.gov does not permit the use of special characters). If, however, the legal name of the LLC is MY COMPANY, LLC, a Texas series limited liability company, then the same legal name is used as in the previous example (i.e., MY COMPANY LLC).

But what should you do if you are applying for an EIN for the first series of MY COMPANY, LLC? After all, banks require a separate EIN for each series and each series is a separate entity for all purposes.

My approach is to use both the series name and the LLC's name in the EIN application. For illustration, let's assume my series LLC's legal name is MY CRE HOLDINGS CO., LLC, and let’s assume my first series is 123 MAIN ST., LLC, an individual series of MY CRE HOLDINGS CO., LLC, a Texas series LLC. Using this example, the legal name on the online EIN application would look like this:

Notice that, like before, I've omitted the commas and periods (what the IRS calls "special characters" and prohibits in the online application). I have told the IRS that the company applying for the EIN is 123 MAIN ST LLC and that this company is a series of MY CRE HOLDINGS CO which is a Texas series LLC.

Now, when I apply for an EIN for 456 MAIN ST., LLC–the second series in my series LLC–I am able to (1) actually obtain an EIN for this individual series of the company and (2) notify the IRS that this company is a series of a Texas LLC.

Neither the IRS, nor the public, will find a Certificate of Formation in Texas for 123 MAIN STREET, LLC. What can be found, however, is an assumed name certificate for 123 Main Street, LLC that identifies it as a series of MY CRE HOLDINGS CO., LLC.

Until the IRS adds the Series LLC to the list of legal structures applying for the EIN–and addressing the many issues raised by using the LLC for a Series LLC in the current online application process–I believe this is the best approach to applying for EINs for a Series LLC."

Series LLC, with its lack of filed Articles for the Cells is often a problem. First, develop a good relationship the "business banker" most banks have a dedicated person. Business bankers are far more likely to be up on current business-related issues than personal bankers. You can try: opening the initial account under the Series LLC first, which does have a set of filed Articles. After that's opened, then you can usually open the accounts for the Cells using a combination of the Series LLC's incorporation number and the individual Cell's Federal Tax Identification Number. Make sure you have copies of the Articles, Operating Agreements and Federal Tax ID number printouts with you when you go to open the account, so you can clearly show how the entities relate to each other.

If you find that your bank is stuck on the lack of Articles, or an incorporation number, a filed D/B/A/ application might do the trick. Most banks are familiar with setting up accounts using a D/B/A. This can take patience, while SLLC have been around for awhile they are still not a "normal" transaction for bank staff. Similar to setting up a Solo 401k many are unaware of the laws and regs and don't want to touch anything unfamiliar and so it is always easier to say "we don't, can't do that.

My business banker at Case said they have a strict no series rule. Will only set up accounts for single LLC. So, starting to look around. Like Bill said lots of other people with SLLC's and lots of other banks! ByeBye Chase.

Is anyone, here on BP, a member of SCORE?

Fear of failure... Is greater than desire to reach your goal. Fear wins. People have many fears (obsticles) that prevent success but only a single goal that is of constantly bombarded by a myriad of fears.

Easiest way I have found is to use your Alexa app to input and then send to Alexa. I know it supports BP podcast as I have previously used it to listen. But, today I can not get it to work without the app.

@Jason Williamson both @Mark Nolan and @Justin Windham @Brian Eastman are principles in the very firms that you are looking for. While they are not all in Chicago, in this day and age you do not need them to be. They, are all active here and if you visit their websites you can garner an education on the subject that is worth 100x what you will pay for it (free). In addition, prices are all over the place in this market so research reputation, it is your friend. But I can attest that they are all very helpfull and forthcoming with advise here on B.P.

Thank you @Mark Nolan and @Justin Windham. It is truly a blessing to have such great resources here @BiggerPockets. What about offering a loan to an LLC (to purchase R.E.) that I am a member of from a 401k that I am the administrator for?

@Mil Sanghvi

Have you tried " Pay Near Me" They are a B.P. sponsor.

http://lp.paynearme.com/biggerpockets accepted at 7-Eleven,Family Dollar and elswhere.