<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by PSAwizard:
Thanks for replying. I'm in CT and part of a stock investment club. Someone wants to join our club using a CT tax ID#. All members so far have joined with a SS#. Our stock club is a Limited Liability Company, LLC. The person that wants to join uses this number instead of his SS# for privacy issues. That is what he says. I think he would have some kind of legal advantage/protection if we allow him to join. He states he would have no advantage and uses the tax# in place of his SS# all the time which I didn't think was right.
PSAwizard
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That is a bunch of BS that he is giving you and you are correct with respect to the advantage. Think for a moment on when the LLC provides earnings statements to its members and files corporate tax returns. Presuming there are profits made by the corporation, how will the LLC report income paid to this guy without a Federal SSN? The CT tax ID # is only for State use and has nothing to do with the IRS. That license is only for business conducted in the State. He is a liar if he says he uses the number in place of his SSN because if he is an employee, the employer would need his SSN for none other than Federal tax purposes.
The way I view his scam is that he is attempting to set up business in a way that he does not have to report income on his Federal 1040 tax returns. If his SSN is not used, he will be in essence getting unreported income. That is why he is telling you the reason is for privacy issues. His attempt to scam the IRS is a private matter betweem him and his evil twin.
This guy is bad news, stay away. I request that your LLC hire a tax attorney or CPA to advise you accordingly. Sounds like you folks are greenhorns and not experienced investment professionals.
