How to properly fill out a W9 for a disregarded LLC owned by a corporate parent?

You're actually doing it right the first time. For a single-member LLC that's disregarded for federal tax purposes, the W9 should list the owner's name on Line 1 (your corporate parent), the disregarded entity's name on Line 2, and the owner's EIN in Part 1. The confusion from your clients is understandable but doesn't change the correct way to complete the form. The IRS specifically addresses this in their W9 instructions. The disregarded entity's legal name goes on Line 2 as "doing business as" (DBA), and the parent corporation's information goes everywhere else because they're the actual taxpayer from the IRS perspective. If it helps, you could add a brief cover letter explaining the change when you send W9s to vendors who previously had the incorrect version. Something like: "Please note our W9 now correctly reflects our company structure per IRS requirements. The parent company listed is the appropriate taxpayer entity.

After spending hours trying to sort out my LLC tax stuff, I finally found taxr.ai (https://taxr.ai) and it completely solved my W9 confusion. I uploaded my company structure documents and the IRS instructions, and it analyzed everything and confirmed exactly how to fill out the form correctly. It highlighted the specific parts of the W9 instructions that apply to disregarded entities and showed me examples of properly completed forms. What really helped was that it created a custom explanation I could send to my clients explaining why the W9 looks different than before. The vendors stopped questioning it once they understood the tax rules behind it.

I was really skeptical about taxr.ai at first, but after struggling with our complicated business structure, I decided to give it a try. I've been pleasantly surprised. I uploaded our operating agreements and corporate docs, and it accurately identified our disregarded entity status and provided the correct W9 completion instructions. What I found most helpful was the explanation feature - it generated a simple PDF I could send to vendors explaining why the W9 shows our corporate parent rather than just the LLC they're familiar with. The vendors have stopped questioning us about it, and I'm confident we're following the proper IRS guidelines now. It saved me from having to revert to the incorrect method just to avoid confusion.

If you're tired of explaining your W9 situation to every client, you might want to try what I did. I had the same issue with my disregarded LLC, and after weeks of back and forth with clients, I called the IRS to get official clarification I could reference. It took FOREVER to reach someone - like 3 hours on hold. I finally discovered Claimyr (https://claimyr.com) and used their service to get an IRS agent on the phone in about 15 minutes. I recorded the call (with permission) where the agent confirmed the correct way to fill out the W9 for a disregarded LLC. Now I just send that recording along with my W9 to any client who questions it. Check out how it works: https://youtu.be/_kiP6q8DX5c

I can't believe I'm saying this, but I tried Claimyr after my skeptical comment, and it actually worked. After struggling for weeks with our complex W9 situation, I got connected to an IRS representative in about 18 minutes. The agent walked me through exactly how to complete the W9 for our disregarded LLC and confirmed what others said here - parent company on Line 1, LLC on Line 2, parent's EIN in Part 1. The agent also emailed me official IRS documentation explaining this requirement, which I now include when sending W9s to new clients. No more confusion or arguments about whose EIN should be used. I wish I had done this months ago instead of sending out forms I knew were technically incorrect just to avoid the hassle.

There's actually another approach I've used that works well. Fill out the W9 correctly (parent on Line 1, LLC on Line 2, parent's EIN), but in the "Notes" section or in a cover letter, I include: "For payments, please reference [LLC Name] on all documentation. This W9 reflects our parent company for tax purposes per IRS requirements." Most accounting systems allow you to set the "doing business as" name different from the legal entity name, so this helps clients correctly process payments while still having proper tax documentation.

I think this could actually be a good situation to use the new Form W-9 (Rev. October 2024) since they updated it specifically to address confusion with disregarded entities. The new form has clearer instructions for this exact scenario and a dedicated spot to put "For tax filing purposes only" next to the corporate parent name. You should be able to download it from the IRS website. The new form makes it much more obvious to clients why you're listing both names.

I've been dealing with this exact same situation for the past two years! What finally worked for me was creating a standardized "W-9 Explanation Sheet" that I attach to every W-9 I send out. It includes a simple diagram showing our corporate structure and a brief explanation that says something like: "Our LLC (Valleyview Services) is a disregarded entity for federal tax purposes, meaning the IRS treats it as part of our parent corporation (Mountain Ridge Enterprises) for tax reporting. This is why Line 1 shows our parent company name and we use their EIN - it's required by IRS regulations, not a mistake." I also include a reference to the specific IRS Publication 1635 section that covers this. Since I started doing this about 6 months ago, I've had maybe 2-3 follow-up questions total instead of the constant back-and-forth I used to get. Most clients just file it away and move on once they understand it's an IRS requirement, not our choice. The key is being proactive about the explanation rather than waiting for them to question it. It's saved me probably 10+ hours of phone calls and emails per month.

I've been lurking on this thread because I'm facing the exact same W-9 headaches with our disregarded LLC structure. Reading through all these responses has been incredibly helpful - it's reassuring to know I'm not the only one dealing with confused clients and vendors. What really resonates with me is the proactive explanation approach that several of you mentioned. I think I've been making this harder on myself by just sending the W-9 without context and then having to explain it after people get confused. The idea of creating a standardized explanation sheet or cover letter seems like it could save so much time and frustration. I'm particularly interested in the IRS Publication 1635 reference - I had no idea there was specific guidance on this. Does anyone know if there are other IRS publications or resources that address disregarded entity W-9 completion? Having multiple official sources to reference would probably help with the more stubborn clients who keep insisting we're doing it wrong. Also, for those who have successfully implemented the explanation sheet approach - do you find that clients are more accepting when they see it's an IRS requirement rather than just our preference? I'm hoping that emphasizing the regulatory aspect will reduce the pushback we get.

This thread has been incredibly helpful! I've been struggling with the same W-9 confusion for months with our disregarded LLC. What I'm taking away from all these responses is that I need to stop second-guessing myself and stick with the correct IRS method (parent company on Line 1, LLC on Line 2, parent's EIN). I love the idea of creating a proactive explanation sheet. I think part of my problem has been that I keep flip-flopping between the correct and incorrect methods depending on who I'm dealing with, which probably makes me look unprofessional and inconsistent. Having a standardized approach with official IRS references should give me the confidence to do it right every time. One question for those who have implemented the explanation sheet approach - do you customize it for each client or use the same template for everyone? I'm wondering if mentioning the specific LLC and parent company names makes it more personal and therefore more credible, or if a generic explanation works just as well. Also, has anyone dealt with international clients who might not be familiar with US disregarded entity rules? I have a few overseas vendors who seem especially confused by our W-9, and I'm wondering if there are additional explanations that might help in those situations.

This has been such a valuable discussion! I've been dealing with this exact same issue for over a year with our disregarded LLC, and reading everyone's experiences has given me the confidence to finally do this right consistently. What really helped was seeing that multiple people confirmed the correct approach (parent company on Line 1, LLC on Line 2, parent's EIN) and that the confusion from clients is normal and manageable. I think I've been overthinking this and making it harder than it needs to be. I'm definitely going to implement the proactive explanation sheet approach that several people mentioned. Having official IRS publication references seems like it will eliminate most of the pushback I've been getting. The idea of framing it as "IRS requirement" rather than our preference is brilliant - people tend to stop arguing once they understand it's regulatory compliance. For anyone else still struggling with this - it sounds like the key is consistency and proactive communication. Stop flip-flopping between methods and stick with what's correct according to IRS rules, then get ahead of the confusion with clear explanations that reference official sources. Thanks everyone for sharing your experiences and solutions. This community is incredibly helpful for navigating these tricky business situations!

I've been following this discussion with great interest since I'm in a very similar situation with our disregarded LLC. What struck me most is how many of us have been second-guessing ourselves and flip-flopping between the correct and incorrect methods just to avoid client confusion. After reading through all these responses, I'm convinced that the proactive explanation approach is the way to go. I especially appreciate the specific references to IRS Publication 1635 and the Instructions for Form W-9 - having those official sources to cite should eliminate most of the pushback. One thing I'd add for anyone implementing this: consider timing your W-9 updates strategically. I plan to send out corrected W-9s with explanation sheets to all our regular clients during our annual contract renewals, so it feels like part of a routine administrative update rather than a sudden change. This might reduce the "why are you changing this now?" questions. Thanks to everyone who shared their experiences and solutions. It's reassuring to know this is a common challenge and that there are proven ways to handle it professionally while staying compliant with IRS requirements.

This discussion has been incredibly valuable! I've been dealing with the exact same W-9 confusion for our disregarded LLC, and it's such a relief to see that so many others have faced this challenge. The consensus here is clear - we need to stick with the correct IRS method (parent company on Line 1, LLC on Line 2, parent's EIN) and stop second-guessing ourselves. What I'm taking away from this thread: 1. Create a proactive explanation sheet with IRS publication references (1635, Form W-9 instructions) 2. Frame it as regulatory compliance, not our preference 3. Be consistent - no more flip-flopping based on client preferences 4. Time updates strategically (like during contract renewals) The amount of time and stress this could save is huge. I've probably spent 20+ hours over the past year explaining and re-explaining our W-9s to confused clients. Having a standardized, professional explanation that cites official IRS sources should eliminate most of that back-and-forth. Thanks everyone for sharing your experiences and practical solutions. This is exactly the kind of real-world guidance that makes navigating business compliance so much easier!

This entire discussion has been a game-changer for me! I've been struggling with our disregarded LLC's W-9 situation for almost two years, constantly switching between the correct and incorrect methods based on client reactions. Reading through everyone's experiences has finally given me the confidence to do this right consistently. What really resonates is how many of us have been in the exact same position - knowing the IRS requires parent company on Line 1, LLC on Line 2, and parent's EIN, but then reverting to the "easier" incorrect method to avoid client confusion. That inconsistency probably made us look unprofessional and unreliable. I'm implementing the proactive explanation sheet approach immediately. Having official IRS publication references (1635, W-9 instructions) and framing it as regulatory compliance rather than our preference should eliminate 90% of the pushback. The strategic timing suggestion of coordinating updates with contract renewals is brilliant too. One additional tip I'd add: I plan to keep a digital copy of this thread bookmarked to reference when I need to explain the situation to particularly stubborn clients. Sometimes seeing that multiple businesses face this exact same challenge helps validate that we're not just making things complicated for no reason. Thanks everyone for the practical wisdom and encouragement. This community's real-world experience is so much more valuable than just reading IRS publications in isolation!

This thread has been absolutely invaluable! I'm a new member here dealing with this exact W-9 nightmare for our disregarded LLC. After months of going back and forth with confused clients and vendors, I was starting to think I was the only one struggling with this. Reading through everyone's experiences has been so reassuring - especially learning that client confusion is totally normal and doesn't mean we're doing anything wrong. I've been flip-flopping between the correct method (parent company on Line 1, LLC on Line 2, parent's EIN) and the incorrect-but-easier method just to avoid the constant explanations and pushback. The proactive explanation sheet approach is brilliant! I had never thought about getting ahead of the confusion instead of just reacting to it. Having those official IRS publication references (especially Publication 1635) should give me the credibility I need to stick with the correct method consistently. What really clicked for me is framing this as "regulatory compliance" rather than our preference. That completely changes the conversation - clients tend to accept IRS requirements even when they don't love them. I'm going to create a standardized explanation that emphasizes this is federal tax law, not our arbitrary choice. Thanks everyone for sharing your hard-won wisdom! This community is such a valuable resource for navigating these tricky business compliance issues that aren't always covered clearly in official documentation.

As someone new to this community and dealing with a similar disregarded LLC situation, this entire thread has been incredibly helpful! I've been struggling with the same W-9 confusion for months - knowing the correct IRS method but constantly second-guessing myself when clients push back. What really stands out to me is how many experienced business owners have faced this exact challenge. It's reassuring to know that client confusion is normal and doesn't indicate we're doing something wrong. I've been making the same mistake of flip-flopping between correct and incorrect methods just to avoid the hassle. The consensus here is clear: stick with IRS requirements (parent company Line 1, LLC Line 2, parent's EIN) and use proactive education rather than reactive explanations. I'm particularly excited about implementing the explanation sheet approach with official publication references - especially IRS Publication 1635 which I had never heard of before. The strategic timing suggestion of coordinating W-9 updates with contract renewals is brilliant too. It frames compliance updates as routine business maintenance rather than sudden policy changes. Thanks everyone for sharing your real-world solutions. This kind of practical guidance is exactly what new business owners need to navigate complex compliance requirements professionally!