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CHETA
New Member

Single-owner LLC - should use SSN or EIN in 1099?

This is more a question about invoicing than taxes, but it will impact my taxes. Can anyone please clarify any pros or cons of using SSN vs EIN in 1099s when being a single-owner LLC? Thanks!
9 Replies
Critter
Level 15

Single-owner LLC - should use SSN or EIN in 1099?

Ok ... if you have an EIN for your LLC you need to use that number ... why would you want to give out your SS# to anyone ... that is why you get an EIN ... so you don't need to broadcast your SS# to the world.

In the tax program, in the business info section you will be allowed to enter the EIN so it shows on the Sch C and gets married to your SS# automatically.  

CHETA
New Member

Single-owner LLC - should use SSN or EIN in 1099?

Thank you, Critter#2. When completing the W-9 I was not sure if I needed to put my SSN, since I used my name, on Line 1 and business name on Line 2.  Thanks for clarifying.
Critter
Level 15

Single-owner LLC - should use SSN or EIN in 1099?

Read the W-9 instructions carefully ... it gives you the answer ...   <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/fw9.pdf">https://www.irs.gov/pub/irs-pdf/fw9.pdf</a>
TaxGuyBill
Level 9

Single-owner LLC - should use SSN or EIN in 1099?

The W-9 instructions were revised in 2014, and it basically says your personal name goes on Line 1, and YOUR SSN or EIN (not the LLC's EIN) goes on the W-9.

In other words, you should get an EIN in your personal name (not the LLC) to put on the W-9.  The LLC's EIN can be used for banking purposes, retirement purposes, and employee purposes.
Taxathrone
Level 2

Single-owner LLC - should use SSN or EIN in 1099?

@TaxGuyBill -- I'm using my own EIN number (in my name) on the W-9, but I needed to get an EIN number in my (single member) LLC's name to open a business bank account. Now I've received a 1099-INT from the bank with my LLC's name (just its name) and its EIN number on it--do I need to have the bank re-issue the 1099-INT in my name and SSN or EIN (or at least with my SSN or EIN on it)?

Critter-3
Level 15

Single-owner LLC - should use SSN or EIN in 1099?

Interest earned by a Sch C business goes on the personal return as regular interest not on the Sch C and the form doesn't need to be reissued as it is not incorrect.   The IRS knows all items under the EIN belongs on the return with your SS#  ... it all marries up on the form 1040.

Taxathrone
Level 2

Single-owner LLC - should use SSN or EIN in 1099?

@Critter-3 -- it's really not a problem that the 1099-INT from bank is in my (single member disregarded entity) LLC's name (just its name) and has its EIN number on it, even though per the IRS "a single-member LLC classified as a disregarded entity generally must use the owner's social security number (SSN) or employer identification number (EIN) for all information returns and reporting related to income tax" (and not the LLC's EIN)?

AmyC
Expert Alumni

Single-owner LLC - should use SSN or EIN in 1099?

You used the term LLC which is vague as it could have been sch C or S corp, but in your recent reply, you updated it with information for a single member, disregarded non-entity. You included a page to the IRS sch C and a quote. The page you are referring to it just basics of sch C business. Look up on the same page of Single Member LLC and see:

Owner of Single-Member LLC

If a single-member LLC does not elect to be treated as a corporation, the LLC is a "disregarded entity," and the LLC's activities should be reflected on its owner's federal tax return. If the owner is an individual, the activities of the LLC will generally be reflected on:

                             

When you file your 1040, it will be your Social Security Number. Included with the 1040, is your Schedule C, using your EIN. The interest can go on your sch C. It is all connected.

 

@Taxathrone

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Critter-3
Level 15

Single-owner LLC - should use SSN or EIN in 1099?

Think about this logically .... Bank interest for a sole proprietor does NOT go on the Sch C since  it is NOT subject to SE taxes.  It gets reported as interest income on the personal return  using the Sch B if needed.  

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