Hello,
I've just started a Single Member LLC. I tried my best to speak with small business mentors and get help along the way (including reading these tax forums) while setting everything up.
It was recommended that I keep business and personal finances separate as that is one of the major advantages for establishing an LLC. So, I applied for an EIN so that I could have a bank account for my business. How else will I keep my business finances separate from my personal?
I now have my first client and I need to fill out a W-9 but I'm running into a major issue. It says I need to file taxes under my name and my SSN as the LLC is a disregarded entity. The client will use the information on the W-9 to set me up as a vendor in their system and also track what they have paid me for 1099 reporting at the end of the year. They can only use one name for my vendor name. In order to deposit checks into my business account, they would need to use the business name but then that would go against IRS regulations regarding single member LLCs, correct?
I see a lot of conflicting information on these forums about this and I'm not sure where to turn. I don't want to lose this client by appearing unprofessional and not knowing what to write on my W-9. I asked them to please pay me to my business banking account but for all income tax reporting purposes, to please refer to my personal information. They said their system is not set up this way and I will need to choose one or the other.
How do single member LLC owners typically keep business and personal fiances separate, if the LLC isn't even a business entity for income purposes? I don't want to be subject to backup witholdings but I also want to keep my business fiances separate.
Any insight or information would be greatly appreciated!
