@AmeliesUncle wrote:
That is interesting that the application says that. That in not in harmony with the W-9 Instructions or what I've read in the Regulations about an LLC.
There's the confusion that I'm talking about. When the instructions aren't clear and you have questions, you have to ask someone for clarification. Employees at any organization (especially with the government) have a responsibility to give you accurate information. If it's conflicting, keep asking until you get a solid answer. I understand the issue though - it can take years for an organization like the IRS to update all of their instructions across every form, so they can conflict.
@AmeliesUncle wrote:
While it is fine line, the sole proprietor (you) is different than the LLC (even though the LLC is taxed as 'you'). For example, if you sold the LLC to somebody, that other person would keep the EIN because it belongs to the LLC, not you.
That's exactly why I don't think it's a good idea to give a sole proprietor EIN to your clients if you mean to do business with them as an LLC. The EINs are separate. If the documents that a client has on file show that they're doing business with you as a sole proprietor, you have no protection. They could go after your personal assets.
I think the IRS is just trying to get individuals to use their SSN with the W9 instructions. It probably makes it easier for them to identify you. They don't care about any legal issues that can come with giving your personal information to a client. If there ever is an issue with putting your LLC info on a W9, both you and the IRS have the documents showing that it's your LLC. I think people are making a mistake by using a sole propretior EIN, and signing up for one when you already have an LLC doesn't look like it's allowed.
