This is exactly the kind of EIN confusion that trips up so many small business owners! You're not alone in this - I see this scenario constantly in my work helping folks navigate business tax issues. The key thing to remember is that your single-member LLC is "disregarded" for federal tax purposes, which means the IRS treats you as if the LLC doesn't exist when it comes to taxes. So yes, you should continue using your original sole proprietorship EIN (11-1111111) on your Schedule C and other tax forms. When Square sends you that 1099-K with your LLC's EIN (22-2222222), don't panic! The IRS systems are actually pretty good at connecting the dots. Both EINs are tied to your Social Security Number in their database, so they can match the income even if the EINs don't align perfectly on your return. That said, I'd recommend adding a brief statement to your tax return explaining the situation - something like "Income reported on 1099-K under LLC EIN 22-2222222 is included in Schedule C business income reported under sole proprietorship EIN 11-1111111." This creates a clear paper trail and shows the IRS you're being transparent about the discrepancy. For future W9 forms, stick with your sole prop EIN as the IRS instructions specify. I know it feels weird when you're operating as an LLC, but remember - for tax purposes, you're still essentially a sole proprietor with some extra legal protection.

This thread has been incredibly helpful! I'm dealing with a very similar situation with my web design business. I started as a sole prop, got an EIN for client W9s, then formed an LLC but kept it as a disregarded entity. PayPal required the LLC's EIN for their business account setup, so now I have two EINs just like the OP. Reading through all these responses, it sounds like the consensus is pretty clear - keep using the sole prop EIN on tax forms and W9s, and don't worry about the 1099-K having the different EIN. The explanatory statement approach mentioned by several people here seems like the smart way to handle it. One thing I'm curious about though - has anyone actually had the IRS question or audit them specifically because of this EIN mismatch situation? All the advice here makes sense logically, but I'm wondering if there are any real-world examples of this causing problems down the road, or if it really is as straightforward as everyone is saying. Also, for those who mentioned contacting the IRS directly about this - did you call the general taxpayer assistance line, or is there a specific department that handles business EIN questions?

This entire discussion has been incredibly enlightening! I'm actually facing a very similar situation where I thought I'd have two W-2 jobs but one turned out to be 1099 contract work. I made the same mistake with box 2(c) on my W-4 and was completely confused about how to handle it. Based on all the great advice shared here, I'm planning to: 1) Submit a corrected W-4 to uncheck box 2(c), 2) Add additional withholding on line 4(c) to cover my estimated 1099 income and self-employment taxes, and 3) Set up a separate account to track 1099-related expenses from day one. The point about the 15.3% self-employment tax being on top of regular income tax was a real eye-opener - I definitely wasn't factoring that in properly. For anyone else just figuring this out, the consensus seems to be planning for about 25-30% of 1099 income to go toward taxes, which is higher than I initially expected but makes sense when you break down all the components. Thanks to everyone who shared their real-world experiences and practical tips - this is exactly the kind of guidance that's impossible to find in generic tax advice articles!

This has been such a comprehensive and helpful discussion! As someone who's currently navigating the exact same W-2/1099 combination situation, I wanted to add one more perspective that might be useful. I'm about six months into juggling both types of income, and one thing I wish I'd known earlier is how much the quarterly nature of 1099 work can affect your cash flow planning. Even if you choose the extra withholding route (which I'd also recommend for simplicity), you still need to think about timing - especially if your 1099 payments come irregularly or you have large business expenses upfront. What's worked well for me is creating a simple monthly budget that accounts for the fact that roughly 25-30% of any 1099 payment needs to be "untouchable" for taxes. I transfer that percentage to a separate high-yield savings account immediately when I receive each payment, treating it like it's already gone. This way, I'm never tempted to spend tax money, and the account earns a little interest while waiting for tax time. Also, don't underestimate the value of keeping a running list of potential business deductions throughout the year. I started a simple note on my phone where I jot down anything that might be deductible - from equipment purchases to professional development courses. It's amazing how much you can forget by tax time if you don't track it as you go. The advice about unchecking box 2(c) and using additional withholding instead is spot-on. It really is the cleanest approach for most people in this situation!

Have you considered restructuring your ownership? Instead of having your S Corp own the partnership interest, you could potentially own it personally or through a different entity structure that might avoid this phantom income/reasonable compensation conundrum.

I went through almost the exact same situation two years ago with my S Corp receiving phantom income from a real estate partnership. The stress was unbelievable because I kept thinking the IRS would come after me for not paying myself a salary on income I never received. After consulting with a tax attorney, I learned that the key distinction is whether you're providing services to earn that income. In my case, like yours, the S Corp was just a passive investor in the partnership - I wasn't managing properties or providing any services to generate that income. The attorney explained that reasonable compensation requirements are specifically designed to prevent people from avoiding payroll taxes on income they earn through their labor, not on investment returns or allocations. What really helped my peace of mind was getting everything documented properly. I kept detailed records showing: 1) The partnership never made distributions, 2) My S Corp had no cash flow from this income, 3) I wasn't providing any services to the partnership, and 4) All my formal requests to the partnership for financial information (which they ignored). The documentation ended up being crucial because I did get a notice from the IRS about two years later (not an audit, just questions). Having all that paperwork ready made it easy to explain the situation, and they accepted my position without any issues. Don't let the stress eat you alive - just make sure you document everything thoroughly.

I've been dealing with IRS notices for years through my work, and I wanted to add a few practical tips that might save you some headaches: When you send your certified mail response, also send a regular copy via standard mail as backup. Sometimes certified mail gets delayed or lost in processing, and having that backup ensures they receive your response. It's a small cost for extra peace of mind. Also, regarding the tax preparer situation - document everything about your interactions with them (dates you asked for address changes, what they promised, etc.). If they charged you for preparation services but made fundamental errors like missing W-2s and wrong addresses, you may be entitled to a refund of their fees. Many states have consumer protection laws that cover tax preparation services. One thing I always tell people: take photos of every document you're sending with your phone before putting them in the envelope. This gives you an instant backup record with date stamps, which can be helpful if there are any questions later about what you submitted or when. The IRS is generally very reasonable about mail forwarding delays, especially when you can document the timeline clearly. Your situation is more common than you think, and they have procedures in place for exactly this type of scenario. You're handling it exactly right!

I've been reading through all this advice and wanted to add something that might help with your stress level - you can actually check the status of your Form 3531 response online once you send it in. After you mail your response, wait about 2-3 weeks for it to be received and initially processed, then you can call the IRS and reference your case. They can tell you if your documents were received and whether your response adequately addressed all the issues on the Form 3531. Also, I noticed you mentioned being worried about penalties - in most Form 3531 situations where you're just providing missing documentation (signatures, W-2s, SSN verification), there typically aren't additional penalties beyond what might have already been assessed. The IRS mainly wants to complete processing your return, not penalize you for their missing information. One more thing that helped me when I dealt with this - create a simple folder (physical or digital) with everything related to this Form 3531 response. Include copies of what you send, your certified mail receipts, photos of documents, timeline notes, everything. Having it all organized in one place makes it so much easier if you need to reference anything later or if the IRS has follow-up questions. You're really handling this well despite the frustration with the tax preparer! The fact that you're being so thorough and systematic about your response shows you're taking all the right steps.

As someone who's been through this exact situation, I can share what worked for me! I lived with my parents rent-free when I started travel nursing too, and here's what I did to establish a legitimate tax home: 1. Created a simple written rental agreement with my parents for $200/month (way below market rate but shows financial responsibility) 2. Set up automatic bank transfers with clear descriptions like "rent payment" 3. Took over paying one utility bill (I chose the internet bill - around $80/month) 4. Made sure ALL my official documents used their address (license, voter registration, bank accounts, etc.) 5. Kept detailed records of every payment and contribution The most important thing is consistency and documentation. The IRS doesn't require you to pay market-rate rent, but you DO need to show genuine financial ties to the location. Even small, regular contributions count as long as you can prove them. Also, make sure you understand the "temporary vs indefinite" rule - your assignments need to be expected to last less than one year to qualify for tax-free stipends. Since you mentioned 3-6 months, you should be fine there. Good luck with your first assignment! Maryland is a great place to work as a travel nurse.

Great question about the temporary vs indefinite rule! Each individual assignment needs to be expected to last less than one year - so your plan of doing back-to-back 3-6 month assignments is perfectly fine from a tax perspective. The IRS looks at each contract separately, not your total time away from home. However, there is one thing to watch out for: if you stay in the same general area for more than 12 months total (even with multiple contracts), the IRS might start to consider that your new tax home. So as long as you're moving between different cities/regions for your assignments, you should be good. Also wanted to add to the great advice already given - consider getting a small storage unit or keeping some personal belongings at your parents' house. This helps demonstrate that you truly consider it your permanent residence and plan to return there. The IRS likes to see that you haven't "abandoned" your tax home. One more tip: keep a simple calendar or log of days spent at your tax home vs. assignment locations. While there's no specific requirement, spending some time at your tax home between assignments (even just a few days) helps reinforce that it's truly your permanent base.