Your Name in ALL CAPS Does NOT Make You a Corporation – Here’s Why!

The ALL CAPS Debate

There’s a popular myth making the rounds: if you see your name in all caps on an official document, like an EIN notice, that means you’re recognized as a corporation.

But is this true? Let’s dig into this claim, using real examples and breaking down why all caps have no bearing on corporate status.

Clearing Up the Confusion

Recently, I posted a video on TikTok explaining the difference between how the IRS treats corporations as separate “people” versus LLCs.

In the comments, some viewers suggested I was mistaken.

Let’s take a look at a few of these comments and address the concerns.

Comment 1: “Wrong. That’s why you need a UCC-1 and 3 and a security agreement.”

Response: UCC-1 filings and security agreements are used for securing loans or assets. They have no connection to how the IRS formats names on EIN notices. The all-caps format is simply used for clarity and visibility. It doesn’t imply that a name is being treated as a corporate entity.

Comment 2: “Which name? The all-caps corporate function or your natural name? You should really stop this.”

Response: The all-caps style on EIN forms is just that—a style. Just as cities and states are written in all caps on official forms, this doesn’t turn your name into a “corporate function.” It’s simply a way to make information stand out and isn’t tied to legal status.

The Law on All Caps: Where This Idea Comes From

This myth has roots in an old idea that certain names in all caps signify something deeper, especially in legal contexts.

Here’s the real story:

In the 20th century, to make state laws more uniform, bar associations created suggested legal frameworks, known as “uniform codes.” One of these was the Uniform Commercial Code (UCC), first published in 1952 and still updated regularly. The UCC became a standard for commercial transactions and contracts across states.

One area that came up frequently in court was “conspicuous” language in contracts. The UCC defines “conspicuous” as something meant to be easily noticeable. To achieve this, many contracts use all caps for important terms, making these details stand out to readers. However, this formatting does not imply corporate status—it’s purely a visibility choice.

What Does All Caps Actually Mean?

To keep it simple, think of all caps like bold letters in a letter or document—they’re just there to grab your attention. Here’s how it applies in tax documents:

• LLCs: The IRS doesn’t view LLCs as “separate people,” so the owner’s name often appears on their EIN notices, showing the LLC’s connection to the owner.

• Corporations: Corporations, on the other hand, are incorporated entities, meaning they’re legally distinct from their owners. Because of this, a corporation’s EIN document typically doesn’t include an owner’s name, as the corporation stands alone.

Using all caps doesn’t make someone or something a corporation—it’s just a formatting style to make information more visible on official paperwork.

Why UCC Filings Don’t Change This

Some people mention UCC filings, like UCC-1 and UCC-3, when discussing the format of EIN documents. Let’s clarify what these filings are and why they’re unrelated to EIN formatting or corporate status.

The UCC-1 and UCC-3 filings are part of the Uniform Commercial Code (UCC), which provides standardized rules across the U.S. for handling commercial transactions.

Here’s a brief overview:

• UCC-1 Filing (Financing Statement): A UCC-1, or “financing statement,” is a form filed to publicly declare a creditor’s interest in a debtor’s property or assets. It’s often used when a lender secures a loan with specific assets (such as equipment or inventory) as collateral. By filing a UCC-1, the creditor establishes priority over those assets in case the borrower defaults, putting other creditors on notice of their claim.

• UCC-3 Filing (Amendment): A UCC-3 is filed to amend, continue, assign, or terminate an existing UCC-1 filing. For instance, if a loan is paid off, the lender would file a UCC-3 to terminate the UCC-1, releasing the claim on the collateral. It can also be used to update the original filing or transfer interest to another creditor.

These filings are strictly for public record and are essential for tracking secured lending relationships. However, they have no bearing on EIN documents, tax status, or the corporate nature of an entity.

A UCC filing shows collateral or security interests in assets—it doesn’t change how the IRS views a person or entity on EIN paperwork.

Conclusion: Let’s Stay Grounded

So, even though it may seem like a name in all caps on an EIN document carries weight, it’s just a formatting choice. The purpose is to make information stand out, not to indicate a legal or corporate status. I hope this clears things up! Remember, not everything written in all caps has hidden meaning.