Re: Can I avoid giving my SSN on a W-9 as a SMLLC? - Page 2
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Expert Alumni

Can I avoid giving my SSN on a W-9 as a SMLLC?

Keep in mind, it may be that the reason that the SSN is required in this case is so that the IRS can correctly assign to SE taxes to the right SS account, since you are a sole proprietor.

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Level 1

Can I avoid giving my SSN on a W-9 as a SMLLC?

Exactly why I had an IRS EIN issues for my IL registered Single-Owner/Member LLC (a disregarded entity).  One purpose was to protect my personal SSN and associate myself to, but legally separate myself from personal liability/assets from the LLC business. But there were 2 additional key reasons below;

 

1) BUSINESS BANK ACCOUNT - In IL (at least), I needed to apply for an IRS EIN for my LLC in order to open a "business" bank account. The LLC was issued the IRS EIN, which I was informed that EIN would be used to pay quarterly taxes. I still had the option to pull through any LLC distribution as income and report on my 1040.    

 

2) W9 REQUESTS - All internal W-9 (between the LLC and Client) is filed between the LLC and Client - The IRS W9 clearly states "Give Form to the requester. Do not send to the IRS. I know what the instructions say, but I was informed to use the LLC EIN because the Client pays invoices to the LLC, not me directly. 

 

Note: On Turbo Tax it is simple to associate the single owner LLC EIN with my personal income tax (which uses my SSN) 

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Level 12

Can I avoid giving my SSN on a W-9 as a SMLLC?

"The LLC was issued the IRS EIN, which I was informed that EIN would be used to pay quarterly taxes."

 

Quarterly payroll taxes for your employees, yes. 

 

If you send quarterly estimated payments in for your personal 1040 with your EIN, they may not be credited to your personal account.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪
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Level 1

Can I avoid giving my SSN on a W-9 as a SMLLC?

Thank you Lisa. So because I am filing my LLC business profit/loss via my 1040, how do I make estimated payments to IRS, by my personal SSN or the LLC EIN? 

 

Its my first experience with LLC, so the rules by State, Fed, Banking Account Rules, and IRS Quarterly taxes seems to have less clarity and poor alignment with the rules.

 

- Do I pay my quarterly IRS Taxes via my personal SSN since I will be filing taxes with 1040?

- I welcome any comments to help -- confusing because;

A) in Illinois, my LLC needed a FED issued EIN in order to open a business bank account.

B) Clients pay my LLC business / account  (which required LLC to have FED EIN).

C) At year end there would be a distribution from the LLC to myself (as taxable income). Which I will merge the LLC income within my 1040 filing.

 

Why wouldn't I be able to incorporate payments made to my Single owner LLC EIN (since it is categorized in terms of taxes, as a sole proprietorship in terms of taxes?   I definitely want to make this right, and tie the quarterly taxes back to me, which I thought was accomplished since I am tied to the LLC EIN (name, business, SSN)

 

Thank you again. perhaps I need to reach out to tax attorney or tax accountant again?

 

Regards,

Bob 

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Expert Alumni

Can I avoid giving my SSN on a W-9 as a SMLLC?

For the W-9, you may use your EIN. Since this is given to private, non-secure sources, I would highly recommend using the company EIN rather than your Social Security Number. Additionally, your business is in dealings with the payer, not you personally.

 

Estimated Taxes paid are reported on your personal Form 1040, not on schedule C. The estimates go towards your personal tax liability, not just your tax liability based on your business income. For all these reasons, your estimated tax payments should be paid attributed to your personal social security number. 

 

 

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