I have a SMLLC taxed as an DisEnt and was asked to fill out a W9 for the first time.
I do have an EIN, but the current instructions make it seem like I have to use my SSN on this. I really do not want want to do that for paranoia and security reasons. Do I have to use my SSN or am I misinterpreting the instructions or is there a way I can get another number to use?
From the Instructions:
Its saying if you incorporated the LLC then use the corporation EIN.
You are not supposed to use the EIN of the disregarded entity. The W-9 is an income tax form and the entity is disregarded for income tax purposes. The reason for a disregarded entity to get an EIN is if it has payroll. The entity is not disregarded for payroll.
The number on the W-9 should be the SSN or EIN of the owner of a disregarded entity. If you do not want to give out your social security number, you should get an EIN in your name as a sole proprietor. That is what footnote three is referring to.
Businesses should indicate their name on line 2 if it's different from your name, and their employer identification numbers in Part I. You're certifying to the IRS that the tax ID number you're providing is correct and accurate when you submit Form W-9.
so if you have an ein you can use it. that's what i did
I've been using my Single Member LLC EIN on the W9 since I started the business six years ago, and I just noticed the statement "Do not enter the disregarded entity’s EIN". I cannot fathom any reason why the IRS would not allow use of this EIN on the W9. The original IRS notice providing the EIN clearly indicated it is a Sole Member LLC along with my full name used on my 1040 tax return; and I had to provide my SS # during the application process. Also on Sch C of my tax return, I report the name of the LLC along with the business EIN and my SS #. I've never had any issues using this EIN with the many W9s I've submitted to clients, and the IRS has never questioned my tax returns with income reported until this EIN. I'm going to conclude the statement "Do not enter the disregarded entity’s EIN" is meant for some other bizarre reason not understood by me. And besides if I obtained a personnel EIN now I have 2 EINs associated with work done through the LLC and where would I place this personal EIN on my tax return; that's got to be more of a mess than just sticking to the first one which is what I plan to do until I have a better reason to change.
The instructions are correct. This is how another source explains it:
Enter your Social Security number in Part 1. The IRS prefers that you use your SSN, although it is permissible to enter an employee identification number (EIN) that you’ve obtained in your capacity as a sole proprietor. This is not, however, the same EIN which you may have obtained for the LLC. In other words, unless you obtained more than one EIN, just use your SSN.
Click here for more information: EIN
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