When I am filling out a W9 as a 1099 contractor, do I use my SSN or the EIN that was created when I formed my LLC? I have a single member LLC.

[kf15]

From what I've read, I get the impression that if you're a single member LLC/disregarded entity and will be filing your taxes with your social security number, you shouldn't use the EIN you applied for under your LLC's business name. Unfortunately, I did just that and now I think I need to correct my W-9s. Any thoughts?

From: W-9 Instructions Part I (on page 4)

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.

[Critter-3]

*3
You must show your individual name and you may also enter your
business or DBA name on the “Business name/disregarded entity”
name line. You may use either your SSN or EIN (if you have one), but the
IRS encourages you to use your SSN.

Although the IRS encourages you to use the SSN it is not REQUIRED ... the whole reason to get an EIN as a disregarded entity is so you DON'T have to put your SSN out into the world more than you have to.   On the Sch C  you will enter the EIN  and to get the EIN you had to link it to your SSN   so the IRS can and will marry the information together on your return.  In  the 40+  years me  and my partners have been in business this has never been an issue.   

[AmeliesUncle]

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@kf15 wrote:

Do not enter the disregarded entity’s EIN.

---

That is correct.  The EIN of the disregarded Single Member LLC does NOT go on the W-9 or 1099.  As you pointed out, the instructions are clear.  Unless the LLC has employees, pays excise taxes or has certain employer retirement plans, there is little or no need for the LLC to have an EIN.

The instructions for the W-9 say to put YOUR name on Line 1, not the name of the LLC.  When you enter your ID number on the W-9, you put the ID number of what is on Line 1 ... which is YOU, not the LLC.

As Critter pointed out, you don't want to be handing out your Social Security Number, so you should get an EIN in YOUR name (not the name of the LLC), and that is what you use on the W-9.

[hjs738]

Thanks for this post.  So to be clear, I already have an EIN for my single-member LLC (eg Consulting Group LLC ; JANE SMITH SOLE MBR).  Should I request another EIN (as sole proprietor) to put on my W-9s?  Should its it name be me (eg Jane Smith) or should it be similar (but different) from my llc (eg Consulting Group)

[DianeW777]

Do not request another EIN as sole proprietor, and use your own SSN on the W-9 it should be you because you are the owner of the single member LLC.

When you receive any Forms 1099-NEC (or Forms 1099-MISC if applicable) you will put them on your Schedule C as sole proprietor since there is not return being filed for the LLC at this time.

[AmeliesUncle]

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@hjs738 wrote:

 Should I request another EIN (as sole proprietor) to put on my W-9s?  Should its it name be me (eg Jane Smith) or should it be similar (but different) from my llc (eg Consulting Group)

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Yes.  Do NOT use the EIN of the LLC on a W-9.  The instructions for the W-9 are quite clear about that.

It will be in your personal name, the same first and last name that you use on your tax return (near the top of Form 1040).

[The Money Ninja]

@KittyM This is NOT correct. Unless your EIN is for an LLC that's a corporation, then you can. If it's a single-member LLC, it's a disregarded entity and the IRS instructions for Form W-9 explicitly states you must use your own SSN.

https://www.irs.gov/pub/irs-pdf/fw9.pdf

There have been fines for compliance issues to this, so I'd consult your tax attorney before listening to KittyM's advice. I know you mean well, but the instructions from the IRS is very clear on this.

[Critter-3]

A single member LLC  is a sole proprietor for income tax purposes  and as such can enter the business EIN on the W-9  so that they don't need to give out the SS# which is the main reason for getting an EIN ... the instructions for Part 1 says this most clearly ...  the EIN was married to a SS# when it was issued and is entered on the Sch C so the IRS automatically weds the 1099 info to the correct Sch C...  For 20 years in the business this has never been an issue for me or any of my clients. 

Part I. Taxpayer Identification Number (TIN)
Enter your TIN in the appropriate box. If you are a resident alien and
you do not have and are not eligible to get an SSN, your TIN is your IRS
individual taxpayer identification number (ITIN). Enter it in the social
security number box. If you do not have an ITIN, see How to get a TIN
below.
If you are a sole proprietor and you have an EIN, you may enter either
your SSN or EIN.

[EricG40]

I don't see where you are getting this from.  The current instructions clearly state:

Line 1 Instructions:

b. Sole proprietor or single-member LLC. Enter your individual name as shown on your 1040/1040A/1040EZ on line 1. You may enter your business, trade, or “doing business as” (DBA) name on line 2.

Part I. TIN instructions:

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. If the LLC is classified as a corporation or partnership, enter the entity’s EIN.

The section that says "or EIN, if the owner has one" will not apply to an individual US citizen who has an SSN.

I would certainly like to use the LLC's TIN for tax purposes, but I haven't yet seen how to avoid giving the SSN on a W-9.  

[AmeliesUncle]

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@EricG40 wrote:

I don't see where you are getting this from.  The current instructions clearly state:

Line 1 Instructions:

b. Sole proprietor or single-member LLC. Enter your individual name as shown on your 1040/1040A/1040EZ on line 1. You may enter your business, trade, or “doing business as” (DBA) name on line 2.

Part I. TIN instructions:

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. If the LLC is classified as a corporation or partnership, enter the entity’s EIN.

The section that says "or EIN, if the owner has one" will not apply to an individual US citizen who has an SSN.

I would certainly like to use the LLC's TIN for tax purposes, but I haven't yet seen how to avoid giving the SSN on a W-9.  

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Notice the part I highlighted in your response.  You can have an EIN in YOUR name to use on the W-9.

[EricG40]

The Owner is the Individual who does not have and EIN.  Individuals have SSN's.  Are you saying that in line 1 you would write the disregarded LLC and Not the Owner?  Or are you saying you would write the Owner in line 1 and use the EIN in Part 1.   I can tell you that when I tried to do the latter at the bank, it came back with a mismatch and would have caused problems including backup withholding.   Writing the disregarded entity name in line 1 and EIN is probably a better way to handle it, though I don't think it is correct.   I 100% agree that we should be able to use the EIN for security reasons and there is a lack of clarity in the instructions, but I haven't been convinced yet that the W-9 system is set up that way.  Happy to be proved wrong. 

[Critter-3]

This is from the W-9 form instructions here ... if you are a sole prop and do not wish to give out your SS# you can use the EIN ... this is one of the best reasons for getting an EIN even if you are not required to do so.  I have been in the business almost 30 years and have never had an issue with this and neither have my partners some of whom have been in the business more than 50 years.  

Part I. Taxpayer Identification Number (TIN)
Enter your TIN in the appropriate box. If you are a resident alien and
you do not have and are not eligible to get an SSN, your TIN is your IRS
individual taxpayer identification number (ITIN). Enter it in the social
security number box. If you do not have an ITIN, see How to get a TIN
below.
If you are a sole proprietor and you have an EIN, you may enter either
your SSN or EIN.

[AmeliesUncle]

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@EricG40 wrote:

The Owner is the Individual who does not have and EIN.  Individuals have SSN's. 

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That is your misunderstanding.  A Sole Proprietor can get an EIN in their own name for their business.  Again, an EIN in YOUR name, not the LLC.   

[Bird6356]

You are absolutely right.  Unless you as a individual have an EIN you should put your social security number because the IRS does not recognize disregarded entities (single member LLCs) and therefore you should not use LLC EIN.  It does explicitly state exactly that.  Use your SS# for the W9.  Yes, the vendor can still use your LLC business name to write checks if your bank accepts them.

[RyanCScott]

This is an old thread, but I wanted to add to this if anyone else finds it in a search. I called the IRS. They said that you can put your single member LLC's EIN on a W9. Your LLC info is tied to your name and SSN and is filed on your schedule C when you do your taxes, so they know that it's you. You don't have to use your SSN or get a separate sole proprietor EIN for W9 forms. They admitted that the instructions on the form are confusing, and had to spend a long time double checking.