topic 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. in Business & farm

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 — Thu, 06 Jun 2019 07:19:00 GMT

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?

Use your LLC's name and Employer Identification Number (E...

KittyM — Thu, 06 Jun 2019 07:19:02 GMT

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.

Turbo tax kitty, on page five of six on the W9 instructio...

srepooc — Thu, 06 Jun 2019 07:19:04 GMT

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?

@srepooc I'm sorry you found my answer unhelpful. The in...

KittyM — Thu, 06 Jun 2019 07:19:07 GMT

@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.

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

srepooc — Thu, 06 Jun 2019 07:19:07 GMT

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 .

See the little footnote 3? It reads: "3 You must show...

KittyM — Thu, 06 Jun 2019 07:19:09 GMT

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.

Ok, thank you!

srepooc — Thu, 06 Jun 2019 07:19:11 GMT

Ok, thank you!

My pleasure. :)

KittyM — Thu, 06 Jun 2019 07:19:12 GMT

My pleasure. 🙂

Re: See the little footnote 3? It reads: "3 You must show...

taqu — Wed, 14 Aug 2019 23:22:21 GMT

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

Re: See the little footnote 3? It reads: "3 You must show...

VolvoGirl — Wed, 14 Aug 2019 23:30:37 GMT

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

Re: 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.

Carl — Thu, 15 Aug 2019 12:44:46 GMT

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-number-ein-online and read and follow the instructions.

Re: 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.

Lisa995 — Thu, 15 Aug 2019 19:55:40 GMT

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.

Re: See the little footnote 3? It reads: "3 You must show...

taqu — Thu, 15 Aug 2019 21:55:27 GMT

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.

Re: @srepooc I'm sorry you found my answer unhelpful. The in...

taqu — Thu, 15 Aug 2019 22:57:13 GMT

@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".

Re: @srepooc I'm sorry you found my answer unhelpful. The in...

EricG40 — Wed, 05 Feb 2020 00:02:59 GMT

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.

Re: Use your LLC's name and Employer Identification Number (E...

kf15 — Fri, 25 Dec 2020 07:49:49 GMT

From what I've read, I get the impression that if you're a single member LLC/disregarded entity and will be filing your taxes with your social security number, you shouldn't use the EIN you applied for under your LLC's business name. Unfortunately, I did just that and now I think I need to correct my W-9s. Any thoughts?

From: W-9 Instructions Part I (on page 4)

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.

Re: Use your LLC's name and Employer Identification Number (E...

Critter-3 — Fri, 25 Dec 2020 14:33:28 GMT

*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.

Although the IRS encourages you to use the SSN it is not REQUIRED ... the whole reason to get an EIN as a disregarded entity is so you DON'T have to put your SSN out into the world more than you have to. On the Sch C you will enter the EIN and to get the EIN you had to link it to your SSN so the IRS can and will marry the information together on your return. In the 40+ years me and my partners have been in business this has never been an issue.

Re: Use your LLC's name and Employer Identification Number (E...

AmeliesUncle — Fri, 25 Dec 2020 18:04:04 GMT

@kf15 wrote:
Do not enter the disregarded entity’s EIN.

That is correct. The EIN of the disregarded Single Member LLC does NOT go on the W-9 or 1099. As you pointed out, the instructions are clear. Unless the LLC has employees, pays excise taxes or has certain employer retirement plans, there is little or no need for the LLC to have an EIN.

The instructions for the W-9 say to put YOUR name on Line 1, not the name of the LLC. When you enter your ID number on the W-9, you put the ID number of what is on Line 1 ... which is YOU, not the LLC.

As Critter pointed out, you don't want to be handing out your Social Security Number, so you should get an EIN in YOUR name (not the name of the LLC), and that is what you use on the W-9.

Re: Use your LLC's name and Employer Identification Number (E...

hjs738 — Sat, 30 Jan 2021 04:01:53 GMT

Thanks for this post. So to be clear, I already have an EIN for my single-member LLC (eg Consulting Group LLC ; JANE SMITH SOLE MBR). Should I request another EIN (as sole proprietor) to put on my W-9s? Should its it name be me (eg Jane Smith) or should it be similar (but different) from my llc (eg Consulting Group)

Re: Use your LLC's name and Employer Identification Number (E...

DianeW777 — Tue, 02 Feb 2021 17:37:00 GMT

Do not request another EIN as sole proprietor, and use your own SSN on the W-9 it should be you because you are the owner of the single member LLC.

When you receive any Forms 1099-NEC (or Forms 1099-MISC if applicable) you will put them on your Schedule C as sole proprietor since there is not return being filed for the LLC at this time.