Just to chime in and give a more recent answer . . . the owner of a single-member LLC was under the impression that since the letter they received from the IRS to assign their LLC's EIN said that it could be used to identify them, they should be able to use the LLC's EIN instead of their SSN on the W9. I could definitely see the confusion; therefore, I decided to call the IRS yesterday to see if anything had changed from the instructions, which says a single-member LLC must use their SSN (or their own EIN) - NOT their LLC's EIN on the W9.
Interestingly, I got a completely different answer from the one RyanCScott received when they called the IRS. The answer I received from the IRS rep aligned with AmeliesUncle's responses, the W9's instructions and the IRS web site. It didn't seem to matter that the single-member LLC's letter from the IRS that assigns the LLC's EIN says the number can be used to identify them.
The rep reiterated . . .
If it's a single-member LLC, the OWNER's name goes on Line 1 (NOT the LLC's name - the rep said that was incorrect, because the tax return that is filed for a single-member LLC is the 1040, and the name used on that form would be the owner's name - not the LLC . . . the name in this field must match what is on the tax return).
Single-member LLC's name goes on Line 2.
On Part I, the TIN must match up to the name on Line 1, which in the case of a single-member LLC is the owner's name. Therefore, unless the owner has their own EIN, the TIN they must give is their SSN - NOT the LLC's EIN if they are a single-member LLC/disregarded entity.
Single-member LLCs do not file a separate tax return from their owners, unlike LLCs taxed like a corporation. Single-member LLCs are pass-through entities only, and as such, all income and expenses are ultimately reported on the 1040 under the owner's name and SSN - not the LLC's name and LLC's EIN.
I was told to reject the W9 I received with the single-member LLC's EIN and told to tell the owner to resubmit the form with their SSN since they only had an EIN for their single-member LLC. While the IRS rep was not opposed to the person including their LLC's EIN on the W9 if they really insisted on it, she said the owner must also include their SSN per the instructions - and the SSN would be the number I would use when issuing the 1099.
The IRS rep encouraged me to tell the owner of the single-member LLC to call them if they were still confused - or if that person's accountant or tax attorney was advising them differently.
If anyone wants to call and see if they get another answer, the correct IRS number to call about this topic is (800) 829-4933. They are open from 7am-7pm (I'm guessing M-F).
