EIN vs SSN for income reporting

[drewgale1234]

Hi,

I have a single member LLC that sells exclusively online via Amazon FBA. For the business info Amazon requires to be entered for a single member LLC, if you use your SSN it displays your personal name and not your business name for the public to see, which is undesirable for obvious reasons. If you go against their recommendation and use your EIN and business name, then that is what is displayed publicly.

Doing this will cause that business income to be reported to the EIN and not the SSN, but since it is a single member LLC, this doesn't matter, correct?... since we are the same entity (me and my smLLC), and as long as I pay the IRS my income taxes from the business at the end of the year (along with other income earned from other jobs), all through my SSN... this is all fine and OK, correct?

Thanks!

[TimS5 · Accepted solution]

A Single Member LLC is considered a disregarded entity by the IRS.  Therefore, you will be reporting this income on your Form 1040, Schedule C.  On the Schedule C, you will report your business name in Box D and the EIN (Employer Identification Number) in Box D.  This is how the IRS ties it all together.  (IRS link:  

https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-compan...)

While you have a W-2 job with withholding, you still may end up being underpaid and owe a penalty at the end of the year.  (https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/getting-underpayment-penalty-ge...).  You may want to look at this Turbo Tax link to assist in determining the need to pay estimated taxes  (https://turbotax.intuit.com/tax-tips/small-business-taxes/estimated-taxes-how-to-determine-what-to-p...).

Also don't forget about state taxes if you state has an income tax.

[rschule1 · Accepted solution]

Hi There

Great advice above-Always use your EIN.

As an additional benefit, reporting income under your EIN# might help develop business credit since it makes a clear delineation between you and the business.  It's just a thought. Your banker would be the ultimate expert in this matter.