W9 Question: What happens if Single Member LLC EIN on form??

[Mike9241]

a possible workaround is to file a name change request with the IRS you could use a substitute business name like Ima Alone

 from IRS

Sole Proprietorship

Write to us at the address where you filed your return, informing the Internal Revenue Service (IRS) of the name change. Note: The notification must be signed by the business owner or authorized representative.

[cory1848]

I am already in the process of setting up a new business so I am not devoting anymore time to it. 

[mlsowers]

Maybe I'm missing something, but this does seem to create issues within TurboTax itself.

The situation as I understand it, is that we should use a personal EIN for W9 purposes (money coming in), and the LLC's EIN for payments to my employees/contractors (money going out).

But TurboTax doesn't seem to have a way to differentiate these two. If I want TurboTax to prepare a 1099-NEC for my contractor, TurboTax needs an EIN. But then it puts that *same* EIN on my Schedule C when preparing my tax return. If I change it on one, it changes it on *both*.

[pk]

@mlsowers  just to close out this thread -- it is quite a long one.

(a) for a dis-regarded entity , it is so only for tax purposes .  Thus the owner  files his/her return on Schedule-C using his/her SSN and not EIN.

(b)  The business  still can use its EIN for collecting employee taxes, depositing them with the taxing authorities and maintaining / operating bank accounts.  Thus  a payment received  from a customer  can be addressed to the business and deposited into the business bank account.

(c) The business  can/does issue  W-2, 1099-NEC, 1099-Misc etc. using the EIN as   Employer  identity of the business.  There is no issue  ( I have just tried  ) in TurboTax  issuing the information returns ( W-2/1099s etc. ) using the  EIN.

(d) When the owner of the disregarded entity for tax purposes files his/her own return there is NO conflict   between  owner's SSN and the business EIN  -- Schedule C is based on SSN of the owner, EIN is entered ONLY as in formation of the business..

(e) There is no issue  using the EIN of the business  for purposes of W-9 -- it allows the use of either SSN or EIN ----- one just has to remember  at which level one is operating -- as a person ( SSN ) as a business/ entity (as self-standing like a C-corp , even though it is not treated as such for tax purposes).

I hope this closes this issue.

pk

[cory1848]

This is part of the failure of applications like Turbotax, Stripe, etc. They don't differentiate between the two, and they should. They need to code the option into the program. The IRS allows for it, so should tax preparation and business financial software.