How to Fill Out a W-9 for an LLC Disregarded Company

By Jeff Franco J.D./M.A./M.B.A.

The Internal Revenue Service treats a single-member Limited Liability Company as a disregarded entity for federal income tax purposes. This means that the sole member of an LLC files his taxes in the same way that sole proprietors do. Nonetheless, single-member LLCs may receive certain types of payments that are reportable to the IRS by the payer on an information return, such as on a 1099 form. If your LLC receives one of these payments, in all likelihood, you’ll need to fill out a W-9 form for the payer.

The Internal Revenue Service treats a single-member Limited Liability Company as a disregarded entity for federal income tax purposes. This means that the sole member of an LLC files his taxes in the same way that sole proprietors do. Nonetheless, single-member LLCs may receive certain types of payments that are reportable to the IRS by the payer on an information return, such as on a 1099 form. If your LLC receives one of these payments, in all likelihood, you’ll need to fill out a W-9 form for the payer.

Step 1

Enter your name and the LLC’s legal name on the first two lines of the W-9. On the first line is where you insert the name you file your tax returns under. The second line, however, is where you’ll enter the legal name you chose for the LLC, which should match the name provided on the state LLC formation documents you prepared when creating the entity.

Ready to start your LLC? Start an LLC Online Now

Step 2

Check the appropriate box for your tax classification. The tax classification relates to the type of taxation your LLC earnings are subject to. Despite the fact your legal entity is an LLC, check the “Individual/sole proprietor” box – not the “limited liability company” box.

Step 3

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.

Step 4

Sign the certification in Part 2. To complete the W-9 form, you must certify with your signature that the three statements in Part 2 are accurate. By signing the form, you’re confirming that you filled in the correct SSN or EIN, that you are a U.S. citizen or other U.S. person and that you aren’t subject to backup withholding.

Step 5

Submit the W-9 form to the requester. The IRS doesn’t receive a copy of your W-9; however, the information you report on it will be used on any information return you receive, a copy of which is furnished to the IRS.

Ready to start your LLC? Start an LLC Online Now
How to File a W-9 for an LLC

References

Related articles

How do I Report Income From an LLC?

A limited liability company, or LLC, is a “hybrid” type of business organization that combines the limited liability benefits of a corporation with the pass-through taxation and relaxed reporting requirements of a partnership. The LLC is a creation of state legislatures, and the Internal Revenue Service does not explicitly recognize LLC’s for the purposes of federal taxation. Depending on the status of your company, the IRS classifies LLC’s as a sole proprietorship, partnership or corporation. Understanding how your LLC is classified for federal taxation purposes is important to knowing how to report your LLC’s income.

Can an LLC File as a C Corp?

Once you form a limited liability company, or LLC, you can’t treat your business as a C corp unless you create a legal corporate entity for it. However, if you only want the LLC to file as a C corporation for tax purposes, the IRS allows for it, but the LLC must commit to comply with every corporate income tax rule for a minimum number of years.

How to Tell the IRS If a Corporation Moved States

The Internal Revenue Service requires corporations to keep the agency informed of a valid mailing address where it can send official correspondence. The IRS is not responsible for mail that does not reach the corporation because of a wrong address. Tax obligations will continue to accrue, even if the business never receives notification from the IRS in the mail because the corporation moved to another state. However, the agency provides a number of ways for a business owner to change a corporation's tax records.

LLCs, Corporations, Patents, Attorney Help

Related articles

How to Fill Out a W9 for a Sole Proprietor

If you own and operate a business and choose to run it as a sole proprietorship rather than creating a separate ...

Am I Required to Fill Out a W-9 as a Sole Proprietor?

As the tax filing deadline looms each year, taxpayers begin to compile the relevant information to file income taxes. ...

Are Members of an LLC Subject to Self Employment Tax?

The Internal Revenue Service requires all taxpayers to contribute to the Social Security and Medicare system through ...

Deducting a Salary for a Single-Owner LLC

Creating a limited liability company for your business instead of operating it as a sole proprietor affects your ...

Browse by category