Replies to This Discussion

Permalink Reply by Brenda L Wood on June 20, 2012 at 3:55pm

How about sending them the IRS definition of a Limited Liability Company from the IRS website:  http://www.irs.gov/businesses/small/article/0,,id=98277,00.html

Good luck!!

Brenda Wood

Virginia

Permalink Reply by Dean E Eshelman, CPA, CDPE, IRES on June 20, 2012 at 3:57pm

Just to add my two cents since I am a CPA. LLC stands for Limited Liability Company - not Corporation. A LLC may be a single person operating as a sole proprietor (filing a 1040 Sch C (business) or Sch E (rental property), a partnership (IRS form 1065) consisting of two or more persons (IRS default), or a Corporation. A Corporation then could be a regular Corporation know as a C-Corporation or a S-Corporation also known as a Small Business Corporation. Geees persons who are not versed in taxation or tax law should not be making decisions based on law without consulting their own legal/tax counsel.

Permalink Reply by Terry Hammill on June 20, 2012 at 4:03pm

I should have mentioned... I have already uploaded the following for the Delaware LLC

 

1) Certificated of Formation

2) Operating agreement

3) Letter of Goodstanding from the Secretary of State

Permalink Reply by Debra Enos on June 20, 2012 at 4:03pm

LLC is a Limited Liability Company -  members can be an individual, partnership or corporation  - LLC can be filed as a partnership or corporation. Corporation can be S-Corp or C-Corp.... How is your client's company setup?  Your client should have the application/article to identify, or just go to his accountant/attorney or whoever set him up.

 

This link is will take you directly to the IRS for further information.

http://www.irs.gov/businesses/small/article/0,,id=98277,00.html

Permalink Reply by joe beauchamp on June 20, 2012 at 6:45pm

The bank is looking to see who the LLC is - arms length transaction. I have uploaded the articles several times for different deals. Although I have created a couple of LLC's and INC's, I've never thought of not having articles of inc. Hmm.

Anyway, you can bet that if you cannot prove who controls the LLC, the bank ain't gonna work with ya.  They want to see that Fred owns 30% shares and Susan owns 70%. If you can't do that, they are done.

Before they asked, because I got a new signer for an LLC, I got and uploaded the resolution making this new name an official signer for the LLC as buyer.  That is the sort of thing that they need.

Permalink Reply by ERIC MOBLEY on November 8, 2012 at 11:27pm

The exact same thing is happening to me right now with B of A.  We even had the title company state that they would insure the client/LLC.   We have submitted the articles of organization and Statement of Information and Operating  Agreement as well as Tax ID.  In CA Articles of Organization is a 1 page doc and they are asking for accompanying paperwork as in the rest of the pages to the Articles of Organization and even on the sample from the Secretary of State website the sample is a one page document.  How did you get yours resolved or did you?

Thanks

Eric

Permalink Reply by joe beauchamp on November 9, 2012 at 6:06am

You either have something fishy or a neophyte worse that the current usual dim bulb paper pusher at BofA. They want to know who runs/owns the LLC - who really benefits from the sale - an arms length thing. So, if the things you are giving them don't say who the officers are, who is allowed to sign if not an officer, etc., they will keep complaining. However, I have seen an investor or two with crazy rules like an LLC is OK but a Corp is not..?? So, you might be getting second hand pinheadedness from some Freddie Mac low level instead, for instance.

You want to make those names absolutely clear to the bank. If your normal papers cannot do it, you might try getting a resolution from the LLC stating the info that the bank wants (who are the officers or clearing whatever dubious issue you have).

If there isn't something screwy that you can clear up, try tweeting to @BofA_HELP to call you -  to point out that you've given more than the normal docs for an LLC and they are confused. If that fails, try the investor to put pressure on BofA - and as someone recently pointed out, using a state senator can be very helpful - especially considering how unresponsive some investors can be. (Freddie, Fannie, did you look up long enough from the trough to have your ears burn? Never mind, go get another donut..)