Paolo, you're absolutely right to feel confused - I went through this exact same struggle when I started my single member LLC earlier this year! Yes, you should definitely select "Sole Proprietor" on line 9a of Form SS-4. I know it feels counterintuitive since you just formed an LLC, but here's what I learned: the IRS treats single-member LLCs as "disregarded entities" by default, which means for federal tax purposes, you're taxed like a sole proprietor even though you have all the legal protections of the LLC structure. It's actually a great setup because you get liability protection while keeping your taxes simple. Don't worry about the S-Corp election your friends mentioned - that's a completely separate process they did AFTER getting their EIN by filing Form 2553. You don't need to figure that out on your initial SS-4 form. Most accountants recommend only considering S-Corp status when your business is netting around $50K+ annually, since it comes with additional payroll requirements and accounting costs. My advice: select "Sole Proprietor," get your EIN, and focus on actually building your business first. You can always explore more complex tax elections later when your income justifies the extra administrative work. You're not locked into this choice forever, so don't overthink it!

Paolo, you've received fantastic advice throughout this thread! I went through this exact same confusion with my single member LLC just a few months ago, so I completely understand the frustration with Form SS-4. You're absolutely correct to select "Sole Proprietor" on line 9a. I know it feels weird after just forming an LLC, but that's exactly what the IRS expects. Single-member LLCs are treated as "disregarded entities" by default, which means you get the liability protection of the LLC structure while being taxed as a sole proprietor - it's actually the perfect combination for most new businesses. The S-Corp election your friends mentioned is a completely separate decision that happens AFTER you get your EIN using Form 2553. Don't stress about that now - most tax professionals recommend considering it only when your business is consistently netting $40K-$60K annually, since the additional payroll and administrative costs need to be justified by the self-employment tax savings. My recommendation: select "Sole Proprietor," submit your SS-4, get your EIN, and then focus on actually building your business. You'll report your income and expenses on Schedule C of your personal tax return, keeping things simple while you grow. You can always explore more complex tax structures later when your income justifies it - this initial choice doesn't lock you in permanently!

This has been such an educational thread! As someone who inherited some silver coins from my grandfather and has been putting off dealing with the tax implications, reading through everyone's experiences and advice has finally given me the confidence to move forward. The clarification about collectibles being taxed at 28% (or your ordinary income rate if higher) versus regular capital gains rates was exactly what I needed to understand. I had been assuming they would just be treated like stocks, so this could have been a costly mistake on my tax return. I'm particularly grateful for the mentions of those tax tools and services - having professional guidance for the proper forms and reporting requirements seems like it would save both time and potential errors. The IRS phone service recommendation is also incredibly valuable since getting through to them directly has been nearly impossible in my experience. @Austin Leonard - your situation with acquiring coins at face value is absolutely incredible! Even with the 28% tax rate, you're looking at life-changing returns. The advice about documenting everything and potentially spreading sales across tax years to manage brackets seems spot-on for your situation. Thanks to everyone who shared their knowledge and real-world experiences. This community has been amazingly helpful for understanding what initially seemed like an overwhelmingly complex tax situation!

This thread has been absolutely invaluable! I've been holding some silver coins for about 8 months now and was completely confused about the tax implications when I eventually sell. The clarification that physical silver coins are taxed as collectibles at 28% (not regular capital gains rates) is exactly what I needed to know. @Austin Leonard - what an incredible find at that estate sale! Even with the collectibles tax rate, you're looking at amazing returns. I'd definitely echo the advice others have given about spreading the sales across multiple batches. Not only could this help with tax bracket management, but it also gives you flexibility to capture potentially better pricing if silver markets fluctuate. The recommendations for taxr.ai and Claimyr are really helpful too. As someone relatively new to precious metals, having professional guidance on the proper forms and tax calculations seems like it would be worth every penny to avoid costly mistakes. One question I had - several people mentioned the importance of documentation. For someone like me who bought from a reputable coin dealer with proper receipts, is that sufficient, or should I be keeping additional records beyond the purchase receipts?

Quick question - do gambling losses count against the winnings before they're taxed? Like if I won $10,000 but lost $8,000, do I only pay taxes on $2,000?

Carmen, I've been through this exact situation! One thing that helped me was creating a simple spreadsheet with dates, locations, and amounts won/lost for each casino visit. Even if you don't have perfect records, reconstruct what you can remember - the IRS accepts reasonable estimates if you can show a good faith effort. Also, don't forget about other gambling-related expenses that might be deductible if you itemize - things like travel costs to/from the casino, meals while gambling, and even parking fees can sometimes be included as part of your gambling activity documentation. Just make sure you keep it reasonable and can justify the connection to your gambling sessions. The key is being thorough and honest. Report all winnings (not just W-2G amounts) and document your losses as best you can. If you're unsure about anything, consider consulting a tax professional who has experience with gambling income - it's worth the cost to get it right the first time!

I've been dealing with this exact same confusion for months! As someone who just formed an LLC last year and got hit with my first W-9 request, I totally understand the frustration. The IRS guidance really is counterintuitive when you've specifically gone through the trouble of getting an EIN. What really helped me was talking to other LLC owners in my local business group. Turns out this is one of the most common mistakes new LLC owners make. We all assume the EIN is what we should use because it feels more "business-like" and professional. I ended up using my SSN on recent W-9s after reading through all the IRS publications, but honestly, the peace of mind from getting direct confirmation from the IRS (like some folks mentioned using Claimyr) sounds really valuable. There's so much conflicting information online that it's hard to know what's actually correct. One thing I'm still wondering about - if I do eventually grow to the point where S-Corp election makes sense, is there any issue with having some 1099s tied to my SSN from the early years and then switching to EIN-based 1099s later? Does that create problems for the IRS matching system or is it pretty straightforward as long as everything is reported correctly?

I just went through this exact same situation with my marketing consultancy LLC! The confusion is totally understandable because it does seem backward to get an EIN and then not use it. Here's what I learned after spending way too much time researching this: Yes, for a single-member LLC that's taxed as a sole proprietorship (disregarded entity), you should use your SSN on W-9 forms, not the LLC's EIN. The IRS instructions are correct, even though it feels wrong. The way I think about it now is that the EIN and LLC serve different purposes than I originally thought. The LLC gives you legal protection and helps separate your business operations, while the EIN is useful for business banking, potential employees, and certain tax situations. But for income reporting purposes, since you're taxed as a sole proprietor, the IRS wants everything tied to your personal tax return via your SSN. I had already sent out a few W-9s with my EIN before I figured this out. My accountant said not to panic - just make sure I report all that income on my Schedule C and be prepared to explain the discrepancy if the IRS asks. For new clients, I now use my SSN on W-9s. If the privacy aspect really bothers you (and I get it - handing out your SSN feels risky), you could look into electing S-Corp tax status, which would let you legitimately use your EIN. But that comes with more complexity and costs, so it's worth running the numbers with a tax pro first.

Quick question - does anyone know if we'd be better off just filing without claiming our adopted child and then doing an amended return later when the SSN comes? Our tax guy suggested this but I've heard amended returns can trigger audits?

I went through this exact situation two years ago when we adopted our son! The waiting for the SSN while tax season loomed was so stressful. Just want to echo what others have said - definitely go with the extension rather than filing without claiming your daughter and amending later. One thing I wish someone had told me is to gather all your adoption-related documents now while you're waiting. Things like court documents, attorney fees, agency fees, home study costs, travel expenses if you had any - these can all potentially qualify for the Adoption Tax Credit. Having everything organized made filing so much smoother once we finally got that SSN. Also, don't be surprised if your refund ends up being significantly higher than you initially calculated. Between the Child Tax Credit, potentially the Adoption Tax Credit, and any other credits you might qualify for, we were pleasantly shocked at our final refund amount. The wait was definitely worth it to file one complete, accurate return!