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If a customer opens an account as a single member LLC, does the bank still need to follow the Beneficial Ownership Rule?

If a customer wants to open an account titled as “John Jones DBA Jones Smith Real Estate LLC,” and the LLC is a single member LLC, is the bank still required to abide by the Beneficial Ownership rule?

Yes. All types of limited liability companies (LLCs) fall under the beneficial ownership definition of “legal entities.” This includes both single-member LLCs and multi-member LLCs. A sole proprietorship is not a legal entity but a single-member LLC is a legal entity subject to the beneficial ownership rule. (December 2019)

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