Will the IRS be able to match my tax return to my 1099?

[Idk Wid]

I have this potential dilemma. I’m a sole proprietor but might be wanting to form an LLC in the future and possibly with a different name. I’m about to apply for my EIN as a SP to use on Form W9. 

Should I include my DBA with my EIN application?  Is it required to put your DBA/business name on your schedule C?  My concern is the relationship between forms W9, 1099, and schedule C and the IRS being able to connect the latter two. I don’t want to be forced to send the IRS a letter updating my business name, but I would if I had to.

If I later form my LLC, is it an option to not change anything on my EIN and just leave the business name blank on the W9 so that my 1099s and Schedule C will both have my name only and no business name(if allowed)?  Or would my sole proprietor DBA that’s attached to my EIN still confuse the IRS whether or not I put the LLC name on the Schedule C?

I hope my confusion around this is clear and I can get the best way to handle this situation.

[Critter-3]

Start by reading the rules ... if you are going to do an LLC eventually see what you will need or not need to do.  Any EIN that you get for any reason is all linked back to your SS#.  

https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-a-new-ein 

[Idk Wid]

I won’t need an EIN for the LLC, at least not in the beginning. It’s good to know than an EIN is tied to my SSN, so they should be able to connect my return with any 1099s using the EIN.

So I guess my biggest concern then is using my DBA as as a sole proprietor on my EIN application as well as my schedule C, and then having a different business name with the single member LLC later.  Can/should I omit the DBA on all forms to avoid any confusion later?  Or would I just need to submit a business name change when that time comes?  I couldn’t find the answer to this anywhere.

I have no idea how sole proprietors with multiple businesses manage this if they used a different DBA for each business lol(since the ein is tied to one DBA and business activity if you entered those in the application).

[Critter-3]

Please sit down with a local tax pro and get educated on all the possible  situations you may find yourself in.  

[Carl]

To a point, the IRS could care less what you name your business or what name is used in "DBA". When you apply for an EIN, you are required to associate that EIN with an SSN. When using the EIN, only two entities know what SSN the EIN is tied to; the business owner(s) and the IRS. Those are the only two entities that "need" to know that too.

What does matter after getting an EIN,  is if you later change the name of your business, or if you change the structure of your business. For example, if you change from an LLC to an S-Corp, there are procedures that must be followed and you "may" be required to obtain a new EIN for the new structure.

[Idk Wid]

@Carl Thank you for your response.  So to be clear, it’s not really relevant whether my EIN is associated with a given DBA and business activity?  And when I form my LLC, it won’t matter that the name is different on my schedule C when the IRS receives 1099s with that EIN.  After all, the 1099 should have my name anyways.

Or since you mentioned “if you change your business name,”  would forming an LLC require me to submit a name change because of the “LLC” being added or especially if I choose a different name all together?  Which brings me back to this: would there be any harm in leaving the DBA off the IRS application to avoid that?

[Carl]

The name of the business on the SCH C needs to be the same name you registered the EIN with. But see https://www.irs.gov/businesses/business-name-change to help you determine if you need to submit a change request to the IRS, or if you need to obtain a completely new EIN.

[Mike9241]

here's what the IRS says.

https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-a-new-ein 

to summarize a single-member LLC is treated as a disregarded entity - ie a sole proprietorship. so as long as they remain single-member you do not need a new EIN if you change the name of the business.  as a matter of fact if you operate 20 single-member LLCs each performing different activities so separate schedule Cs need to be filed you use the same EIN for all 20.