I have a single member disregarded entity LLC. I originally acquired an EIN number for it through the IRS as an "LLC". Last year I applied for credit card processing through a company and they told me that the EIN was the incorrect type and that I had to get another one under my personal name instead of my company. I did this and they ended up using this new EIN when they sent me a 1099K. The problem is that I forgot about this from last year and I have already sent out 1099s to all my contractors with the other EIN. I don't know what to do or how to file my tax return now because it's on file that these contractors were paid from a different EIN than my income came in through. Help!
I have attached a link to an IRS web site that will provide some guidance on SMLLC's including the EIN issue:
It's a little difficult to understand exactly the EIN's you are referring to. Since the IRS indicates that you should be using your SS# since this is a disregarded entity, I would recommend you just file your Schedule C using your SS# and include all income for this business on that form.
The issue of sending 1099s to the vendors; you have a couple of options:
- File amended 1099s
- Move forward with what you have done. If you receive any correspondence on the matter you can just indicate that you were confused as to what to do (being a small company) and that going forward you understand that you should be using your SS# for reporting. If they assess any penalty just ask for an abatement. I believe they will waive the penalty if you ask.
I can't speak for turbotax. But, there is a box on the actual Schedule C for a business's or LLC's EIN number to go in if it has one. A single business can have more than one EIN. As long as you report your income and expenses correctly, you should not have anything to worry about. Just make sure that you have substantiation to respond with if you receive any correspondence from the IRS.
@info6 -- I'm in this type of situation, with both a EIN in my own name (as a sole proprietor), which I've provided for W-9 and 1099-K processing, as well as an EIN in my (single member disregarded entity) LLC's name, which I needed to open a business bank account in its name.
What did you end up doing and did you face any issues from the IRS?
For tax reporting purposes, use your SSN for 1099-K, 1099-NEC, 1099-MISC and Form W-9.
The IRS disregards (i.e. does not recognize) single-member LLCs as a tax-paying entity. As long as you are reporting your LLC income on your tax return, using your SSN, the IRS won't create any issues.