I have been fighting this for years. I have been given multiple answers on how to handle this from a number of CPAs, and calling the IRS.
I started as a multiple member LLC. First year filed the 1065 partnership return then my partner decided to leave the business. Ever since then I have had issues withe the EIN and W9 forms. I filed form 8832 for change update years ago. I assume that went through. My current CPA says not to worry about it as its all tied together like you say. I am actually not sure what entity type I am now according to the IRS. From what I read, once a member leaves, you are technically a SMLLC, however your EIN won't reflect that.
The IRS instructions for Do you need a new EIN? contradict themselves. A MMLLC by IRS definition is a partnership. When a partnership moves to a single member, a new EIN is needed. However, under the LLC section, it says its not needed when moving from multiple members to single member. A partnership can be stand alone like a sole prop, but it can also be an LLC. There is no clarification under the LLC section of changing an EIN about that. I can't apply for a new EIN or change of status as it errors out with the LLC name being the same.
To date, I haven't gotten any kick back from the IRS about this. However the issue that comes into play is with TIN verification on W9 forms. Stripe is one offender that will not accept either my personal EIN or LLC EIN. My personal EIN matches to my name, and my LLC EIN matches to the LLC name, not mine. Another client of mine is kicking it back as well. If I put my name on the W9 line 1 and my business name on line 2, they don't match and it fails.
Like Ryan, I do not want to give out my SSN and any form I give to a business should reflect my business name, as they are dealing with a business, not an individual person. I have been using my personal EIN with my name but for 2024 I am switching it back to my business name. I will let the IRS figure out if I am a SMLLC or a regular LLC. This will go against the instructions on the W9, however until they further clarify, this seems to be the only way to protect my SSN while passing TIN verification.
