Started a single member LLC, really confused about form SS-4 line 9a selection

Yes, for a newly formed single member LLC, you would select "Sole Proprietor" on line 9a of Form SS-4 when applying for an EIN. The IRS treats a single-member LLC as a "disregarded entity" by default, which means it's not considered separate from you for federal tax purposes. Your friends who have LLCs but are taxed as S-Corps have likely filed Form 8832 (Entity Classification Election) and/or Form 2553 (Election by a Small Business Corporation) after getting their EIN. This is a two-step process: first you get your EIN as a sole proprietor, then you make the election to be treated as an S-Corporation for tax purposes. The benefit of being taxed as an S-Corp comes later - it can potentially save you money on self-employment taxes once your business is generating significant profit. But for now, "Sole Proprietor" is the correct choice for your situation.

After struggling with the exact same form SS-4 confusion with my single member LLC, I finally found this amazing tool at https://taxr.ai that helped me sort everything out. I uploaded my LLC formation documents and tax questions, and it analyzed everything and explained exactly what I needed to select on line 9a (which was indeed "Sole Proprietor" in my case). The tool also explained the whole "LLC taxed as an S-Corp" thing that was confusing me too. Apparently that's a secondary step you can take later, and you don't need to worry about it on the initial SS-4 form. They showed me exactly what forms I'd need if I ever want to make that change in the future.

Just wanted to follow up about my experience with taxr.ai after being skeptical. I finally tried it with my complicated LLC/rental property situation, and it actually worked incredibly well! It confirmed I needed "Sole Proprietor" on line 9a of the SS-4 form, but then went further and showed me how my rental income would flow through on Schedule E rather than Schedule C (which I didn't know). The document analysis feature was surprisingly helpful - it caught issues with my Articles of Organization that might have caused problems down the road. It also showed me how to properly structure things now to make a potential S-Corp election easier in the future if my income keeps growing. Definitely saved me from making some mistakes on my SS-4 form.

If you're still struggling with your SS-4 form or have other IRS questions, I highly recommend using Claimyr (https://claimyr.com) to get connected directly to an IRS agent. I spent DAYS trying to get through on the regular IRS business line (800-829-4933) with no luck, but Claimyr got me through in about 20 minutes. The IRS agent I spoke with walked me through the exact right selection for my single member LLC on line 9a (which was "Sole Proprietor" as others have mentioned). She also explained when and how I could later change to S-Corp status if I wanted. You can see how the service works in this video: https://youtu.be/_kiP6q8DX5c - it saved me hours of frustration.

I need to eat my words. After my skeptical comment, I was still struggling with my SS-4 form for my LLC, so I broke down and tried Claimyr. Got through to the IRS in about 25 minutes after failing for TWO WEEKS on my own. The IRS agent confirmed that for my single member LLC, I absolutely should select "Sole Proprietor" on line 9a. She also explained that the S-Corp election is a completely separate process that happens after getting my EIN. The agent walked me through several other questions I had about the form that I'd been stuck on. Honestly can't believe how easy it was compared to the hours I wasted trying to call them directly. Wish I'd done this two weeks ago when I first got stuck on the form SS-4.

Another option worth mentioning is that some tax professionals will help you complete Form SS-4 for a relatively small fee. When I started my single member LLC last year, I paid my accountant $75 to handle the EIN application. She selected "Sole Proprietor" on line 9a since that's the default for single member LLCs. Later on, once my business was more established, she helped me file the paperwork to be taxed as an S-Corporation, which was separate from the initial EIN application process. The cost savings on self-employment tax have been substantial, but it only made sense once my business income reached about $50K.

Just to add another data point - I selected "Sole Proprietor" on line 9a of Form SS-4 for my single member LLC last year and it was definitely the right choice. The IRS processed my application without any issues. One thing to be aware of - when you get your EIN as a single-member LLC (selecting "Sole Proprietor"), you'll file your business taxes on Schedule C of your personal return. You don't file a separate business return like you would with an S-Corp or partnership. That was confusing to me at first because I thought having an LLC meant filing a separate business return.

Paolo, you're absolutely right to select "Sole Proprietor" on line 9a for your single member LLC! I went through this exact same confusion when I filed my SS-4 form earlier this year. The IRS treats single-member LLCs as "disregarded entities" by default, which means for tax purposes, you're essentially operating as a sole proprietorship. Don't worry about the S-Corp election your friends mentioned - that's a completely separate decision you can make later by filing Form 2553 after you already have your EIN. Many business owners start as sole proprietors and then elect S-Corp status once their profits justify the additional complexity and costs. The key thing is to get your EIN first with the "Sole Proprietor" selection, then you can always change your tax election later if it makes sense for your situation. Good luck with your new LLC!

Great question Paolo! I just went through this exact same process with my single member LLC a few months ago. You're absolutely correct - select "Sole Proprietor" on line 9a of Form SS-4. The IRS default treatment for single member LLCs is as a "disregarded entity," which means for federal tax purposes, you're treated like a sole proprietor. Your business income and expenses will be reported on Schedule C of your personal tax return (Form 1040). Regarding your friends with LLCs taxed as S-Corps - they likely made what's called an "S-Corp election" by filing Form 2553 AFTER they already got their EIN. This is a separate step that happens later, not something you deal with on the initial SS-4 form. Don't overthink it for now - get your EIN with "Sole Proprietor" selected, and then you can always explore the S-Corp election down the road if your business income grows to a level where it makes financial sense (usually when you're netting $40K+ annually). The S-Corp election can provide self-employment tax savings but comes with additional complexity like payroll requirements. You're on the right track - just go with "Sole Proprietor" and you'll be all set!

Paolo, you're definitely on the right track! For your single member LLC, "Sole Proprietor" is absolutely the correct selection on line 9a of Form SS-4. I just completed this same process for my LLC earlier this year and had the exact same confusion. The key thing to understand is that the IRS treats single-member LLCs as "disregarded entities" by default, which means for tax purposes, you're essentially operating as a sole proprietorship even though you have the legal protections of an LLC. This is actually a great setup for new businesses because you get liability protection while keeping tax filing simple. Don't worry about the S-Corp election your friends mentioned - that's a completely separate decision that happens AFTER you get your EIN. You would file Form 2553 later if you decide the tax savings make sense for your situation (typically when you're making $50K+ in profit and want to reduce self-employment taxes). For now, just select "Sole Proprietor," get your EIN, and start focusing on growing your business. You can always explore more complex tax elections down the road when your income justifies the additional administrative burden. The SS-4 form is just the first step - you're not locked into anything permanently!

Paolo, you're absolutely right to be confused - the SS-4 form can be really tricky for new LLC owners! I went through this exact same struggle when I started my single member LLC last year. Yes, you should definitely select "Sole Proprietor" on line 9a. Even though you formed an LLC, the IRS treats single-member LLCs as "disregarded entities" for tax purposes, which means you're taxed like a sole proprietor by default. This is actually beneficial because you get the liability protection of an LLC while keeping your taxes simple - you'll just report your business income and expenses on Schedule C of your personal tax return. Regarding your friends with LLCs taxed as S-Corps - that's a separate election they made AFTER getting their EIN. They would have filed Form 2553 (and possibly Form 8832) to elect S-Corporation tax treatment. This isn't something you need to worry about on your initial SS-4 form. You can always make that election later if your business grows to a point where the self-employment tax savings justify the additional complexity and costs of S-Corp treatment. Don't overthink it for now - select "Sole Proprietor," get your EIN, and focus on building your business. The tax elections can come later when you have a better sense of your income and whether more complex structures make financial sense!

Paolo, you're absolutely correct to select "Sole Proprietor" on line 9a for your single member LLC! I just went through this exact same process a few months ago and had the same confusion. The IRS treats single-member LLCs as "disregarded entities" by default, which means for federal tax purposes, you're essentially treated as a sole proprietor even though you have the legal protections of the LLC structure. You'll report your business income and expenses on Schedule C of your personal tax return (Form 1040). Your friends who have LLCs taxed as S-Corps made what's called an "S-Corp election" by filing Form 2553 AFTER they already had their EIN. This is a completely separate step that happens later - not something you deal with on the initial SS-4 form. The S-Corp election can provide self-employment tax savings, but it comes with additional complexity like payroll requirements and higher accounting costs. My advice: select "Sole Proprietor" on line 9a, get your EIN, and focus on building your business first. You can always explore the S-Corp election down the road if your profits grow to a level where the tax savings justify the extra administrative burden (many tax professionals suggest considering this around $40K-60K in annual profit). Don't overthink it - you're making the right choice for a new single member LLC!

Paolo, you've gotten great advice here! I went through this exact same confusion with my single member LLC just six months ago. "Sole Proprietor" on line 9a is absolutely the correct choice - don't second guess yourself on this one. What helped me understand it was realizing that the LLC formation (state level) and tax treatment (federal level) are two completely separate things. Your LLC gives you liability protection at the state level, but the IRS defaults to treating single-member LLCs as sole proprietorships for tax purposes unless you actively elect otherwise. The S-Corp election your friends mentioned happens later via Form 2553, and honestly, it's not something most new businesses need to worry about initially. I've been tracking my numbers, and I'm nowhere near the profit level where S-Corp treatment would make sense given the additional costs and complexity. My recommendation: fill out that SS-4 with "Sole Proprietor" selected, get your EIN, open a business bank account, and focus on actually making money with your LLC. The advanced tax planning can wait until you have some real income to optimize!

Paolo, you're getting excellent advice here! As someone who just went through this exact same process with my single member LLC a couple months ago, I can confirm that "Sole Proprietor" is definitely the right choice for line 9a on Form SS-4. I had the same confusion initially because it feels weird selecting "Sole Proprietor" when you just formed an LLC, but that's exactly how the IRS wants it done. The single-member LLC is considered a "disregarded entity" for federal tax purposes, so even though you have the legal protections of an LLC, you're taxed as if you were a sole proprietor. What really helped me was understanding that this initial choice doesn't lock you in forever. I was overthinking it just like you are now, worried I'd mess something up and cause problems later. But once I realized that the S-Corp election your friends mentioned is a completely separate process that happens AFTER you get your EIN (using Form 2553), it took all the pressure off. My advice: select "Sole Proprietor," submit your SS-4, get your EIN, and then focus on building your business. You can always explore more complex tax structures later when your income justifies the additional complexity. For now, you're making the right choice to keep things simple!