How to properly fill out names on a W-9 form - legal name vs. company name confusion

But what if I haven't formed the LLC yet? Can I put a business name on line 1 and then later create that business? Or do I need to wait until after I've actually formed the LLC to fill out W-9s with that info?

You need to wait until you've properly formed your LLC before using it on any tax forms. If you use a business name that doesn't legally exist yet, it creates a mismatch with IRS records. If you're doing business before forming your LLC, you would use your personal name on line 1 of the W-9 and can put your "doing business as" (DBA) name on line 2 if you have one registered. Once your LLC is formed, you can provide updated W-9 forms to clients.

Does taxr.ai actually look at your specific situation or is it just generic advice? I've used other "tools" before that just spit out the same cookie-cutter info I could find on Google.

How much does it cost? I'm just starting out and trying to keep expenses low, but I also don't want to mess up my taxes...

It actually does a personalized analysis based on your specific business structure. You upload your documents or describe your situation, and it uses some kind of AI to analyze the details and give specific recommendations. It's way more tailored than those generic advice sites - it pointed out issues specific to my state regulations that I hadn't even considered. The value is definitely worth it considering what you'd pay for a tax professional's time. I've made back what I spent many times over by avoiding mistakes that would have triggered IRS notices or caused me to miss deductions.

Wait, this actually works? I thought it was impossible to get through to the IRS these days. How long did you have to wait after using this service?

This sounds like a scam. Why would you need a service to call the IRS? You're probably just getting connected to some fake "agent" who gives bad advice.

I had the same thought initially - that it seemed too good to be true. But after using the service, I was connected to the IRS in about 20 minutes. The process is straightforward - Claimyr's system navigates the IRS phone tree and waits on hold for you, then calls you when an actual IRS agent is on the line. No, it's definitely the real IRS. The agent verified my identity using the standard IRS verification process, and I was able to check that I was calling the official IRS number. The advice I received matched what's on the IRS website, but was specific to my situation. It saved me literally days of trying to get through on my own.

Can you explain more about why Wyoming or Nevada specifically? I hear people mention those states a lot for business formation but I'm not sure why they're better than others.

Wyoming and Nevada are popular for privacy-focused business formations because they don't share ownership information with the federal government and don't require you to list the names of LLC members in public filings. They also don't have state income tax. Delaware is another popular option, but it's more about corporate law advantages than privacy. With Wyoming and Nevada, you can often use a registered agent service so your personal address isn't associated with the business in public records. That said, this only helps with public-facing privacy. For tax purposes, the IRS will still know who owns the business regardless of which state you form in.

Did you have to file anything special to fix the mismatch? I think I might have done the same thing last year and I'm worried about getting audited.

This is really helpful! I'm just getting started with freelancing and was totally confused about all this. One question - if I'm planning to form an LLC soon but haven't done it yet, should I wait to send out W-9s to potential clients? Or is it okay to send them now with my personal info and then update them later once the LLC is formed?

You can definitely send W-9s now with your personal information and update them later! In fact, it's better to get the business relationship started rather than waiting. Most clients are used to receiving updated W-9 forms when contractors change their business structure. When you do form your LLC, just send updated W-9s to all your clients before the next tax year (or whenever you want to start operating under the LLC). Make sure to give them enough notice so their accounting departments can update their records. I usually send a brief email explaining the change: "I've recently formed an LLC for my business. Please find my updated W-9 form attached and update your vendor records accordingly." Just keep good records of when you made the transition so you know which payments were made to you personally vs. to your LLC for tax filing purposes.

This checklist is super helpful! I'm bookmarking this thread. Quick question - when you say "electing S-Corp or C-Corp" treatment, is that something you have to do when you first form the LLC, or can you change it later? I'm wondering if I should start simple as a single-member LLC and then elect corporate treatment down the road if my business grows.

You can definitely change your tax election later! When you first form an LLC, it automatically defaults to "disregarded entity" status (meaning you file taxes as a sole proprietor). You can elect S-Corp treatment later by filing Form 2553 with the IRS, but there are deadlines - generally within 2 months and 15 days of the tax year you want it to take effect. Starting simple is often the smart move. Single-member LLC gives you liability protection while keeping taxes straightforward. Once your business income reaches a certain level (many CPAs suggest around $60k annually), S-Corp election can save you money on self-employment taxes. Just remember that once you elect S-Corp treatment, you'll need to run payroll for yourself, file a separate business tax return, and update your W-9s to reflect the business name on line 1. It adds complexity but can be worth it for the tax savings on higher income levels.

This is such great practical advice! The point about automated IRS systems explaining why name matching is so strict really helps put it in perspective. I hadn't thought about using a separate business address for privacy - that's actually a really smart workaround that I hadn't considered. I'm curious about the transition process you mentioned from sole proprietor to LLC. Did you have to send updated W-9s to all your existing clients when you made that change? And did any of them push back or ask questions about why the format changed even though your personal name stayed on line 1? I'm planning to make this transition myself in the next few months and want to make sure I handle the client communication smoothly.

Yes, I did send updated W-9s to all my existing clients when I formed my LLC! I was worried about it being awkward, but honestly most clients barely blinked. I sent a brief email about a month after forming the LLC explaining that I had "restructured my business for liability protection" and attached the updated W-9. Only one client asked follow-up questions, and they were actually interested in doing something similar for their own business. A few clients thanked me for proactively sending the update rather than waiting until they had to request it. The key things I learned: 1) Give clients at least 30 days notice before you need the new info to take effect, 2) Keep the explanation simple and professional, 3) Make it clear that it's the same business/person, just with better legal structure. Most accounting departments deal with contractor structure changes all the time, so it's really not a big deal from their perspective. One tip: I included both the old and new W-9 information in my email so their accounting team could easily cross-reference and update their records. Something like "Previous business name: [Your Name], New business structure: [Your Name], [LLC Name]" - even though your personal name stays on line 1, it helps them understand what changed.

Great point about state-specific requirements! I wish I had known about those newspaper publication requirements before I started researching LLC formation. That's definitely something that could backfire if privacy is your main goal. Your advice about consulting with an attorney upfront is spot on. I made the mistake of trying to DIY everything initially and ended up having to fix several issues later that cost way more than just getting proper guidance from the start. Sometimes the "cheaper" route ends up being more expensive in the long run. The spreadsheet idea for tracking W-9 versions is brilliant! I'm definitely going to implement that system. It would have saved me so much confusion during my transition period when I was trying to remember which clients had which version of my information. For anyone else reading this thread - I'd also recommend checking with your state's Secretary of State website before forming an LLC. They usually have detailed information about all the requirements and fees specific to your state, including any publication requirements or ongoing compliance obligations you might not be aware of.

This is really valuable insight about separating tax privacy from business privacy! I hadn't considered the registered agent approach for keeping personal addresses out of public records while still maintaining IRS compliance. Your point about creating verified templates for different business structures is brilliant - having a tax professional review templates once and then using those as you grow or change structures seems like a much more efficient approach than trying to figure it out from scratch each time. I'm curious about the registered agent services you mentioned - do they typically handle mail forwarding as well, or is it mainly just for the public records aspect? And roughly what kind of costs are we talking about for something like that in Wyoming or Nevada? The distinction between tax privacy and business privacy really helps clarify what's actually possible within the legal framework. It sounds like there are more options than I initially thought for protecting personal information while still following all the IRS requirements exactly.

This is such a comprehensive summary of everything discussed in this thread! I really appreciate you laying out the different scenarios so clearly - it helps me understand exactly where I stand as someone just starting out. Your point about learning "the hard way" with creative name formatting really hits home. I was definitely tempted to try some variations to protect my privacy, but seeing all these examples of people getting IRS notices for mismatches has convinced me to follow the rules exactly. The suggestion about getting a separate business address instead of trying to work around the name requirements is really smart. That seems like the best compromise between privacy protection and tax compliance. Do you have any specific recommendations for virtual mailbox services that work well for small businesses? I'm also curious - when you had to "clean up" the mistakes you mentioned, was it just a matter of sending corrected W-9s to clients, or did you have to do anything special with the IRS to resolve the mismatches?

For virtual mailbox services, I've had good experience with services like Earth Class Mail and Anytime Mailbox. They typically run $10-30/month depending on features and location. The key is making sure they provide a real street address (not a P.O. Box) since some clients and vendors won't accept P.O. Boxes for business purposes. Regarding cleaning up my mistakes - it was actually more involved than just sending corrected W-9s. I had to send corrected forms to all my clients AND file a letter with the IRS explaining the discrepancy when I got the CP2000 notice. The IRS wanted documentation showing that the income was properly reported even though the names didn't match initially. It took about 3 months to fully resolve and definitely taught me to be more careful about following their requirements exactly. The good news is that once everything was corrected and I established consistent naming across all documents, I haven't had any issues since. It's really just about getting the system right from the start and then being consistent.