Legal Question in Wills and Trusts in California

Llc

I am starting an LLC and the sole member is a Living Trust. The Trust uses my SS# , not an EIN. To get an EIN for the LLC, though I need to list the member (Trust) and then the IRS wants an EIN for the trust (nonexitant). They won't accept my SS#. I could get an EIN for the trust, but then I would need to send in a yearly 1041 form which is just another hassle. Anyway arounf this?? Al


Asked on 5/13/08, 7:10 pm

2 Answers from Attorneys
Jonas Grant Law Office of Jonas M. Grant, A.P.C.

Re: Llc

The IRS prefers that single member LLCs with default taxation use social security numbers, since they are disregarded tax entities and report profit/loss on the single member. Therefore, unless your bank says otherwise, or there are other reasons for obtaining an EIN, there should not be a need for one.

Revocable living trusts also generally do not have EINs or file 1041s.

I believe the problem here stems from the fact that you are likely doing this yourself and not using legal or tax advisors, and therefore probably have listed the trust, rather than the trustee, as the LLC member. The trustee's SS# is yours, problem solved.

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Answered on 5/14/08, 10:07 pm
Mitchell Roth MW Roth, Professional Law Corporation

Re: Llc

Form the LLC making yourself as the principal. Then transfer title of the shares to the Trustee of the Trust, as Trustee.

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Answered on 5/15/08, 5:10 pm


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