EIN and Checkbook IRA LLC
I have created a Checkbook IRA LLC.
I have formed a Single Member LLC (SMLLC) with the sole member being the CUSTODIAN FBO ME IRA. The SMLLC has a checkbook and EIN. My goal is to invest in Private Equity through the SMLLC. Until all capital is called I desire that my SMLLC invest in mutual funds and need to set up a brokerage account.
Some brokerage firms will not allow me to create an account if the beneficial owner is my IRA. Those that will, require me to enter the SSN/EIN of the Single Member (i.e. CUSTODIAN FBO ME IRA) and I do not have one.
My custodian advises me to obtain an EIN for CUSTODIAN FBO ME IRA and not use my personal SSN. The IRS website says ” An individual retirement arrangement, or IRA, is a personal savings plan that allows you to set aside money for retirement, while offering you tax advantages. The IRS will only issue an EIN for an IRA trust account if the individual intends to file Form 990-T (Exempt Organization Business Income Tax Return) or Form 1041 (U.S. Income Tax Return for Estates and Trusts).”
Questions
1. Do you concur that my IRA (CUSTODIAN FBO ME IRA) needs an EIN?
2. If yes, do I need to file a tax form each year for CUSTODIAN FBO ME IRA as indicated on the IRS website?
3. If yes, which form do I file?
4. Am I correct to assume I must still file the form even since there will not no income tax due?