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    3 Replies Latest reply on Jun 8, 2008 2:54 AM by Lighthouse24

    New LLC to open business line of credit

    monolith5 Newbie
      I planning on opening a business line of credit with Bank of America. Can anyone tell me if I need to disclose my personal SSN when opening a business account? I want my personal assests and info to remain out of the business, so I want to only use my EIN for the business to open the account. Does anyone have experience with this? Thanks.
        • Re: New LLC to open business line of credit
          LUCKIEST Guide
          New LLC to open business line of credit, Welcome

          Tell us more. Like Who are you, Where are you??
          How long have you been in business??
          Most banks want to see financial reports of the business and the owners.
          Go to Members page and give us some more info,

          Good luck, LUCKIEST
            • Re: New LLC to open business line of credit
              monolith5 Newbie
              I have updated my profile in the members section. At this point Monolith Loudspeakers LLC is seeking funding for start-up (apprx: $15,000). We are looking into purchasing better tools and a larger workspace. We are a NEW company and as of now have been using our personal funding to drive production. As everyone knows, it takes money to make money, so opening a line of credit is one way for us to forge on and continue production and increase sales. The main issues with using my personal SSN is that one: in the event of something negative happening my personal assests could be jeopardized and two: i want to build business credit and keep it strong. As the owner Monolith Loudspeakers LLC, this is dream that I have built and I want to continue to provide a top quality products for something I believe in very strongly: the power of music.

            • Re: New LLC to open business line of credit
              Lighthouse24 Ranger
              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.