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Re: New LLC to open business line of credit Jun 8, 2008 2:54 AM
It doesn't look like your basic question has been answered yet. Federal law (31 CFR 103.34) states that a bank is "required to request your social security number" when you open any new bank account. It doesn't say that you have to give it to them. In fact, BoA has a program in CA and TX (maybe elsewhere) advertising that you don't need an SSN to open a new personal checking account (the campaign is presumably targeting customers from south of the border).
Keep in mind that should you refuse to provide your SSN when requested, the bank has the right to file a Suspicious Activity Report -- which some say will make you about 99 times more likely to be audited by the IRS (I don't know if that's really true, but I can't imagine that it would be helpful in any way).
Also keep in mind that because your new business has no credit history, you are probably going to have to provide your personal guarantee for at least a couple of years in order to get a business credit card and traditional LoC for the business -- in other words, there's really no way to avoid giving a financial institution your SSN (or to avoid jeopardizing your personal assets) if your new business intends to use credit or borrow money early on. You
can open accounts with certain suppliers (Office Depot, for instance) without giving your personal guarantee or SSN -- and you should do that, then buy something and pay it off quickly to start building a credit history in the business name.
I know that might not be the answer you wanted, but I think it's an accurate one. Hope it helps.
