W-9 Form Overview
A W-9 for an LLC is used for financial reporting purposes, including mortgage interest income, non-employee income, and debt cancellation. Companies of all sizes require a completed W-9 from the companies with which they do business.
LLC Tax Classification and W-9 Form
An LLC is classified as either a disregarded entity or a partnership based on the number of owners (members). Your LLC needs a W-9 from all its businesses and service providers. This form, titled the W-9 form, must be completed by the LLC owner and provided to the vendor or contractor.
Filling Out a W-9 Form
When I switched from a sole proprietorship to an LLC, one of the biggest hurdles I hit was figuring out how to fill out a W-9 as a single-member LLC. A W-9 form establishes your identity, including your taxpayer identification number.
EIN Requirements for Single-Member LLC
For federal income tax purposes, a single-member LLC classified as a disregarded entity generally must use the owner’s social security number (SSN) or employer identification number (EIN) for all information returns and reporting related to income tax.
Conclusion
Classifying an LLC for tax purposes and understanding W-9 requirements is crucial to ensure compliance with IRS regulations.