Independent Contractor: Need personal EIN for W9s In addition to LLCs EIN???

[PJD3]

I have a question about setting up a personal EIN.

I am an independent contractor (consultant) and I set up a single member LLC for my business.

I acquired an EIN for the LLC to open a bank account and just in case I need to hire employees in the future.

I want to apply for an EIN for myself, so that I do not have to use my SSN on W9s.  I understand that I am supposed to use my SSN on W9s because my LLC is classified as a disregarded entity but don’t want to for security reasons.

On the SS-4 application for an EIN. I assume that I should put my name on line 1 and my business name on line 2. Is this correct?

More importantly, online 9A (type of entity) what should I choose since this is and EIN for me and not the LLC. Should I choose “sole proprietor” or other. And if  “Other” what should I specify .

Thanks in advance for all your help

[AnnetteB6 · Accepted solution]

If you are worried about providing your Social Security number to companies that will be paying you for your work as an independent contractor, the appropriate number to give them on the W-9 is the EIN for your business.  They will be paying the business for the work, not you as an individual.  

The LLC is a disregarded entity for tax purposes, meaning that it will not have to file a separate tax return.  Instead it will be reported within your personal tax return on Schedule C.

You do not need a second EIN for yourself personally.  You already have it with the EIN for the LLC.

@PJD3

[PJD3]

Thank you for getting back to me.

It was my understanding that if I use the LLC’s EIN it could create an ID mismatch and subject one to backup withholding. Is this the case??

[AnnetteB6]

The mismatch would occur if you submitted your name and the LLC EIN instead of the LLC name and the LLC EIN.  As long as you submit the name of the LLC along with the EIN of the LLC, there would be no mismatch.  

The businesses requesting that you submit the W-9 are paying the LLC, not you personally.  

@PJD3

[PJD3]

Just to be clear, on the W9 under line 1:

1 Name (as shown on your income tax return). Name is required on this line; do not leave this line blank.

MY NAME: John Doe

2 Business name/disregarded entity name, if different from above

MY LLC: XXXXXXXX,LLC

3 Check appropriate box for federal tax classification of the person whose name is entered on line 1. Check only one of the following seven boxes.

CHECK: Individual/sole proprietor or single-member LLC

And finally

PART 1:  Use my LLC EIN

Also I need make use that all money paid to me by clients is written out to XXXXXXX,LLC to avoid any backup withholding.

[Carl]

There's no such thing as a "personal" EIN.  When issuing any tax related documents such as W-2's, 1099-MISC's or anything else, you should *ALWAYS* use the business EIN.

I'm self-employed myself, and under no circumstances will I ever give out my SSN. They get my business EIN or nothing. There are no exceptions.

[alex128]

Hi @AnnetteB6, I am in a similar situation and looking for some clarity.

I have a single member LLC and am confused on which "type" of EIN to provide on my W-9. You state that I can provide the LLC's EIN (the EIN that I would request on behalf of my SMLLC) on the W-9 form, but the instructions on the W-9 form state:

" If you are a single-member LLC that is disregarded as an entity
separate from its owner, enter the owner’s SSN (or EIN, if the owner has
one). Do not enter the disregarded entity’s EIN."

Since my SMLLC is a disregarded entity, it is my understanding that I would not put my LLC's EIN on the W-9 form, but would instead be required to either put my SSN on the form or -to avoid sharing my SSN- apply for a different EIN as a sole proprietor.

Is this correct? As the original question asker alluded to, do I essentially need 2 EINs? 1 as a sole proprietor to "replace" my SSN on W-9 forms and a 2nd for my LLC to open a bank account?