Third party designee shown as sole mbr on official EIN letter - possible liability issue?

This is actually a common point of confusion with EIN letters. When you apply as a third-party designee, you're essentially just the person completing the paperwork, not the responsible party for tax purposes. The "sole mbr" designation is referring to the LLC's structure (single-member LLC), not to you personally. However, the fact that your name appears where it does is something to address. What likely happened is that during the application process, your information as the third-party designee may have been entered in a field intended for the responsible party. The IRS Form SS-4 (or the online equivalent) has separate sections for the responsible party and the third-party designee. I would recommend calling the IRS Business & Specialty Tax Line at 800-829-4933 to clarify and potentially correct the responsible party information. They can verify who is actually listed as the responsible party in their system, which might be different from how the letter is formatted.

After struggling with a similar situation last year, I found this incredible tool that helped me analyze my EIN documentation and clarify my status - https://taxr.ai really saved me a lot of stress and confusion. I uploaded my EIN letter and it immediately flagged that I was incorrectly listed as the responsible party instead of just the third-party designee. What I love about it is that it explained exactly what steps I needed to take to fix the issue, including which specific IRS form to file and how to complete it correctly. Their analysis also included the potential tax implications if I didn't correct the responsible party information right away.

I was initially skeptical about using taxr.ai when someone recommended it for my EIN confusion, but I decided to give it a try after spending three frustrating days trying to get through to the IRS. The analysis was spot on - it identified that my LLC registration had my assistant incorrectly listed as a member rather than just the third-party contact. The tool highlighted the specific section of Form 8822-B I needed to complete and even provided sample language to use. When I finally did connect with the IRS, I had everything prepared correctly which made the process go so much smoother. They confirmed the issue was exactly what taxr.ai had identified, and I was able to get it corrected without any penalties or complications.

Listen, if you need to actually talk to someone at the IRS about this (which you probably should), good luck getting through on those phone lines. After my accountant messed up my EIN application similarly, I wasted DAYS trying to reach anyone. That's when I found https://claimyr.com - they basically hold your place in the IRS phone queue and call you when an agent is about to answer. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was connected to an actual IRS representative in about 45 minutes instead of spending hours redialing. The agent confirmed that the responsible party on file was incorrect and walked me through the correction process right on the call. Saved me a ton of stress and probably prevented future tax headaches.

I have to eat my words about Claimyr. After posting that skeptical comment, I decided to try it anyway out of desperation - I had been trying to fix an EIN responsible party issue for THREE WEEKS. Honestly, it worked exactly as advertised. I got a call back in about 30 minutes, and was connected with an IRS agent who confirmed that the third-party designee (my assistant) was incorrectly listed as the responsible party. They helped me start the correction process immediately with Form 8822-B. Saved me from what would have been at least another week of phone tag and frustration. The agent even mentioned they're seeing this mistake a lot with online EIN applications where third-party designees are involved. So OP, definitely get this corrected ASAP!

One thing to note - there's a difference between being listed as a third-party designee and being listed as the responsible party. The third-party designee is just authorized to speak with the IRS about the application, but the responsible party is the person who controls, manages, or directs the entity and the disposition of its funds and assets. Check Box 3 on the SS-4 form (or the online equivalent) - that's where the responsible party info should be. If your name is there instead of your friend's, you'll definitely want to file Form 8822-B to correct it. This is especially important because the responsible party is liable for the entity's tax compliance.

I had a similar issue last year with my cousin's LLC. Make sure to keep a paper trail of everything while you're sorting this out. When we called the IRS, we got different answers from different representatives, which made things even more confusing.

This is definitely something you need to address quickly. I went through something very similar when I helped my brother-in-law apply for an EIN for his consulting LLC. The same thing happened - my name appeared on the official letter in a way that suggested I was the business owner rather than just the person who helped with the paperwork. What I learned is that the IRS online system can be confusing about where to enter third-party designee information versus responsible party information. In many cases, people accidentally enter the third-party designee's SSN in the responsible party field, which is exactly what it sounds like happened to you. The good news is this is fixable, but you'll want to act fast. I ended up having to file Form 8822-B to change the responsible party information back to my brother-in-law. The process took about 6 weeks, but during that time I was technically on the hook for any tax issues related to his business. I'd also recommend getting a copy of the actual SS-4 application that was submitted to see exactly what information was entered where. You can request this from the IRS, and it will show you definitively whether you were listed as the responsible party or if it's just a formatting issue with the letter.

I've been following this thread closely because I'm dealing with a very similar situation right now. My business partner (also a foreign national) asked me to help with their EIN application last month, and I'm now wondering if I made the same mistake you did. One thing I want to add that hasn't been mentioned yet - if your friend's LLC is registered at the state level, make sure the responsible party information matches between the state registration and the federal EIN. Having mismatched information between state and federal records can create additional complications down the road, especially if there are ever any audits or compliance issues. Also, while you're getting this sorted out, I'd recommend documenting everything in writing. Keep copies of all forms you file, notes from phone calls with the IRS (including dates, times, and the names of representatives you spoke with), and any correspondence you receive. If there are ever questions later about who the actual business owner is, having a clear paper trail will be invaluable. The fact that you're catching this early is really good - I've heard horror stories of people not realizing this mistake until tax season, which creates much bigger headaches. Good luck getting it resolved!

This thread has been incredibly helpful! I'm actually in a similar situation where I helped a friend apply for an EIN and I'm now worried I might have made the same mistake. One thing I wanted to add that I learned from my accountant - if you're listed incorrectly as the responsible party, it's not just about tax liabilities. It can also affect your personal credit if the business has any issues with the IRS down the line. The responsible party designation creates a legal connection between you and the business entity that goes beyond just taxes. Also, for anyone dealing with this issue, I'd suggest reaching out to the person you helped ASAP to make them aware of the situation. They need to understand that until this gets corrected, they might not receive important IRS correspondence about their business, which could lead to missed deadlines or penalties. In my case, my friend had no idea there was an issue until I told him, and by then we'd already missed a quarterly filing notice that came to me instead of him. The sooner everyone involved understands the scope of the problem, the faster you can work together to get it resolved properly.