Confused about W9 for my single-member LLC - IRS says not to use the LLC's EIN?

This actually isn't a mistake - the IRS guidance is correct, though I understand why it seems counterintuitive. When you have a single-member LLC that's taxed as a sole proprietorship, the IRS still views it as a "disregarded entity" for federal tax purposes, meaning it doesn't exist separately from you as the owner. For W9 purposes, you should list your name on line 1, and you can put your business name/LLC name on line 2 (the "business name/disregarded entity" line). For the tax classification, you would check the "Individual/sole proprietor or single-member LLC" box. Now for the TIN part - technically, you should use your SSN if your LLC is disregarded, even if you have an EIN for the LLC. This is because for federal tax purposes, the income is reported on your personal tax return, not a separate business return. However, many single-member LLC owners do use their EIN on W9s instead of their SSN to protect their identity, and it generally doesn't cause issues because the IRS can link your EIN to your SSN through your tax filings.

I went through this exact same frustration last year with my consulting LLC! I ended up using https://taxr.ai to clarify this whole mess because like you, I had an EIN specifically to avoid giving out my SSN. They analyzed the actual IRS regulations and explained that while the IRS does technically want your SSN for a disregarded entity, there's a practical reality to consider. The tool parsed the actual W9 instructions and showed me that while the IRS does say to use your SSN for single-member LLCs, they also acknowledge that many business owners use their EIN for banking, liability protection, and privacy reasons. It's one of those weird tax rule areas where practice doesn't perfectly align with technicalities.

I actually went ahead and tried taxr.ai after my skeptical comment above. Wow - I was surprised at how helpful it actually was! I uploaded my LLC formation documents and the W9 I was struggling with, and it immediately identified the issue and explained it clearly. What I learned is that while the IRS does technically prefer you use your SSN for a single-member LLC that's a disregarded entity, there's no penalty for using your EIN as long as you're consistent with your tax filings. The tool showed me exactly how to fill out my W9 with my business name on line 2 and explained which box to check. It even showed me the relevant section of the IRS regulations that explains this gray area. I feel way more confident now about my decision, and I've been using my EIN on all W9s for my clients without any issues.

After wasting THREE HOURS on hold with the IRS trying to get clarity on this exact issue, I finally discovered https://claimyr.com which got me connected to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that while the technical guidance is to use your SSN for a disregarded entity, they see plenty of single-member LLCs using their EINs on W9 forms without issues. She explained that the most important thing is consistency - whatever TIN you use on your W9s should match what you use on your tax filings. I was honestly shocked at how quickly I got through compared to my previous attempts. The agent was actually helpful and gave me specific guidance rather than just reading from a script.

I take back my skeptical comment about Claimyr. After my LLC partner saw my comment, she convinced me to try it for a different tax issue we were having. I was 100% convinced it would be a waste of money, but I have to admit it worked exactly as advertised. Got connected to an IRS agent in about 15 minutes (they estimated 18, so pretty close). The agent confirmed what others have said here - technically the correct approach is using your SSN for a single-member LLC that's a disregarded entity, but using an EIN is extremely common and doesn't cause problems as long as you're consistent with your tax filings. The agent explained that they can link your EIN to your SSN in their system, so it's not like using your EIN would prevent them from properly tracking your tax obligations. Definitely changed my mind about both the service and this W9 issue.

Just to add another perspective - I've been using my EIN for my single-member LLC on W9 forms for three years now without any issues. Yes, the technical guidance says to use SSN, but in practice, the EIN works fine. I actually asked my accountant about this when I first set up my LLC, and she said many of her clients use their EIN specifically to avoid putting their SSN on forms going to various vendors and clients. She said she's never seen it cause a problem with the IRS or with 1099 reporting.

Quick tip that helped me: When I got my EIN for my LLC, I used Form SS-4, and on that form I had to provide my SSN as the "responsible party." This creates the official link between your EIN and SSN in the IRS database. So even though the IRS technically says to use your SSN for a disregarded entity, they already have the connection between your EIN and SSN on file. That's why using your EIN on W9s doesn't typically cause problems - the IRS can trace it back to you.

I've been dealing with this same confusion for my consulting LLC! What finally helped me understand was realizing that the IRS guidance creates this awkward situation where the "technically correct" approach conflicts with privacy and practical business considerations. Here's what I ended up doing: I use my EIN on all W9 forms but make sure to be completely consistent about it. On my Schedule C when I file taxes, I include my EIN in the business information section, which creates the official link between my EIN and SSN for the IRS. The key insight is that when you got your EIN, you already provided your SSN on Form SS-4, so the IRS has that connection in their system. They can trace payments made to your EIN back to your personal tax return without any issues. I've been doing this for two years now and haven't had any problems with 1099 reporting or tax filing. My accountant actually recommended this approach specifically because it keeps my SSN private while still maintaining proper tax compliance. The bottom line: while the IRS technically prefers your SSN for disregarded entities, using your EIN consistently works fine in practice and is what most single-member LLC owners do to protect their privacy.

I've been through this exact same situation with my freelance writing LLC! The confusion is totally understandable because the IRS guidance does seem to contradict why you'd get an EIN in the first place. What I learned after consulting with a tax professional is that while the IRS technically wants your SSN for a disregarded entity, there's a practical workaround that most single-member LLC owners use. You can use your EIN on W9 forms as long as you're consistent about it across all your business dealings. The key is making sure that when you file your taxes, you include your EIN on Schedule C in the business information section. This creates the official link between your EIN and your personal tax return that the IRS needs to properly track everything. I've been using my EIN on all W9 forms for over a year now, and I haven't had any issues with 1099 reporting or tax compliance. My clients' accounting departments have never questioned it, and the IRS has never reached out about it. The reality is that protecting your SSN privacy is a legitimate business concern, and using your EIN consistently is a widely accepted way to handle this situation. Just make sure whatever approach you choose (EIN or SSN), you stick with it consistently across all your business forms and tax filings.