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

By Jennifer Kiesewetter, J.D.

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

By Jennifer Kiesewetter, J.D.

Limited liability companies (LLCs) are business formations created by state statutes. Depending on how you want to set up your business and how many members you want to include, the Internal Revenue Service (IRS) tax distinctions are a corporation, a partnership, or a sole proprietorship. As a sole proprietorship, taxes are paid through the owner's personal taxes, which is also referred to as pass-through taxation. For this option, which is the typical election when there is only one owner (called single-member LLCs), your business is referred to as a disregarded entity or company.

Person filling out W-9 form with blue pen

You may provide services that require reporting on a Request for Taxpayer Identification Number and Certification (Form W-9). The amount of payment for services, not the services themselves, trigger the reporting. If your services receive more than $600 payments in a taxable year, a W-9 must be provided to the payor for reporting information.

Here's how to fill out Form W-9 for a disregarded entity LLC:

1. Enter your name and the name of your LLC.

On line 1, write your full name. Do not skip this line, as it's required. On line 2, enter the name of your LLC exactly as it is on your formation documents.

2. Indicate that you are a single-member LLC.

On line 3, check the "Individual/sole proprietor or single-member LLC" box. Although you are an LLC, remember to mark the single-member option. For business and liability purposes, you have the protection of an LLC. However, for tax purposes, you are treated like a sole proprietor.

3. Provide information about your LLC.

On lines 5 and 6, provide the full address for your business.

In Part I, a disregarded LLC must provide either the member's Social Security number or the employer identification number (EIN) that you've obtained in your capacity as the owner. This is not the EIN for the business.

However, specific single-member LLCs classified as disregarded entities that formed after 2008 must obtain an EIN for the entity. This is applicable to businesses that have employees for employment taxes. In these cases, you should report the EIN on Form W-9.

4. Confirm your information and sign the form.

In Part II, read the certification. Understand that it is under penalty of perjury. Confirm that the information you provided is correct. Additionally, you are confirming that you're not subject to backup withholding, that you're a U.S. citizen, and that the Foreign Account Tax Compliance Act (FATCA) codes you entered on line 4 are correct if this applies to you.

Once you complete your document, sign and date your W-9. Keep a copy for your records.

5. Submit the completed form.

Submit your complete W-9 to the payor, not to the IRS. The payor uses the information on your W-9 to complete their taxes.

Don't let complicated IRS forms put a drag on your business. Follow the above steps to compete your W-9 efficiently. If you have questions about information on Form W-9, you can work with an experienced attorney. Once you have a W-9 completed for the year, you can use that same form for other payors.

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