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.

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.

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.

Ready to start your LLC? Start an LLC Online Now

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 Taxes for an LLC Company
 

References

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 taxpaying entity for it, such as a corporation, the IRS will consider you to be self-employed. As a result, you will report all income you earn as a sole proprietor on your personal tax return – regardless of whether or not you were required to furnish your clients with W-9 forms.

How to Get a Tax ID for an LLC Company

It can be highly advantageous to organize your small business as a limited liability company, or LLC. An LLC is a separate legal entity, with assets and debts that are distinct from the assets and debts of the individuals operating the LLC. Because an LLC is a separate legal entity, you must register your LLC with the Internal Revenue Service. The IRS generally requires all businesses, including LLCs, to obtain an Employee Identification Number, or EID.

How to Reduce Taxes Using an LLC

If you receive a 1099 for nonemployee compensation, or operate a sole proprietorship or partnership, you are probably paying too much in taxes. You may be able to minimize self-employment tax liability by utilizing the flexibility of an LLC's tax treatment. If you are not already organized as a business entity, doing so will allow you to write off certain expenses related to the business.

LLCs, Corporations, Patents, Attorney Help

Related articles

IRS Instructions for a Business Name Change

If you change the legal name of your business, then as the owner, partner or corporate officer, you are authorized to ...

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 ...

How to File a W-9 for an LLC

One of the major advantages of a limited liability company is that an LLC has pass-through taxation. Unlike a ...

How to Change the Name of an LLC With the IRS

A limited liability company, or LLC, is a form of business association that combines the pass-through taxation and ...

Browse by category
Ready to Begin? GET STARTED