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.

[srepooc]

And if I put my name on line one of the W9 (since I will file taxes using a scedule C) and my LLC name on line two, will checks be sent to me in my name, or the LLC name?

[KittyM]

Use your LLC's name and Employer Identification Number (EIN).  The fewer people who have your Social Security number, the better. 

Don't worry if you have a "disregarded entity" (i.e. a single member LLC), because your 1099's will come in the name of your LLC.  When you fill out your Self-employed tax return, you will have an opportunity to report your business name and EIN to the IRS, so that your income can be matched properly.

[srepooc]

Turbo tax kitty, on page five of six on the W9 instructions there is a table that says if you are a disregarded entity owned by an individual, you should give your name and SSN... yet you mentioned using an EIN, what should I do?

[KittyM]

@srepooc I'm sorry you found my answer unhelpful.  The instructions say your name first and LLC name on line 2.  You seemed to have already figured that out when I answered.  I can't tell you how your payers will issue a check, but most will use the name you ask them to.  As to the ID number, the whole point of getting an EIN is to avoid spreading your SSN around.  If you read the chart you referenced carefully, it says to use the name and number of the owner IF "Disregarded entity NOT owned by an individual."  You are an individual.

[srepooc]

I am looking at the directions on the W-9 right now... it explicitly says:

What name and number to give the requester:

6.  Sole proprietorship or disregarded entity owned by an individual… Give name and SS end of the owner.

8. Disregarded entity not owned by an individual… Give name and EIN of the owner.

 I’m not trying to be difficult… I just think that this is telling me to write my Social Security number and not the EIN… And I’m wondering if that will still allow me to receive checks in my company’s name.  When you look at that page, page 5 of six on the W9, in the lower left-hand corner, are you not reading that? Am I still missing something? Please help me understand .

[KittyM]

See the little footnote 3?  It reads:  "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."  With identity theft issues, I still recommend you go with the EIN.

[srepooc]

Ok, thank you!

[KittyM]

My pleasure.  🙂

[taqu]

Your recommendation to use the EIN - is it the individuals EIN or the disregarded entity EIN?

[VolvoGirl]

Wouldn't that be the same?  Do you have 2 EINs?

[Carl]

EIN - Employer Identification Number. This number is issued by the IRS to a business, not an individual.

TIN - Taxpayer Identification Number. Sometimes referred to as ITIN (Individual Taxpayer Identification Number), this number is issued by the IRS to a living, breathing person who for whatever reason, does not qualify for a social security number.

When self-employed and asked to fill out a W-9 (W-10 for some) under no circumstances and with no exceptions what-so-ever should you provide your SSN or TIN. Always provide your EIN. That way, if your EIN is abused it only affects your business. WHereas if your TIN or SSN is abused it has a very high potential of ruining your entire life forever.

If self-employed and you do not yet have an EIN, you can get one for free for your business and it only takes about 10 minutes. Just go to https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-n... and read and follow the instructions.

[Lisa995]

The only time using the EIN may prove to be an issue is if you become subject to backup withholding by the payer, they would submit that withholding under the EIN, but since you're an SMLLC you'll be filing a tax return under your SSN.   

IRS computers may not be able to automatically cross reference payments submitted under an EIN with the SSN used on a 1040 and send a letter out prior to releasing any refund for that backup withholding.

[taqu]

It appears you can get an EIN for an individual as a sole proprietor or for a disregarded entity.

See references below to IRS instructions to forms W-9 and SS-4. 

IRS instructions for form W-9 (https://www.irs.gov/pub/irs-pdf/fw9.pdf) page 4 under heading "Part I. Taxpayer Identification Number (TIN)", second and third paragraphs: 

If you are a sole proprietor and you have an EIN, you may enter either
your SSN or EIN.

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.

IRS instructions for form SS-4 (https://www.irs.gov/pub/irs-pdf/iss4.pdf) page 3:

Sole proprietor. Check this box if you file Schedule C, or
Schedule F (Form 1040) and have a qualified plan, or are required to
file excise, employment, alcohol, tobacco, or firearms returns, or are
a payer of gambling winnings. Enter your SSN or ITIN in the space
provided. If you're a nonresident alien with no effectively connected
income from sources within the United States, you don't need to
enter an SSN or ITIN. 

[taqu]

@KittyM, in the instructions of IRS form W-9 on page 5 under the chart "What Name and Number to Give the Requester": 

For #6. Sole proprietorship or disregarded entity owned by an individual, the chart says to provide "The owner". 

There's a footer reference (3) with the following: 

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.

For #8. Disregarded entity not owned by an individual, the chart says to provide "The owner". 

[EricG40]

The "You"  that you are referring to in: "You may use either your SSN or EIN (if you have one)," refers to you as an individual, not the LLC.   So the owner would need to get an EIN personally and should not use the LLC EIN.   Using the LLC EIN could create an ID mismatch and subject one to backup withholding.