W9 Completion Guidelines for Single-member LLC taxed as a sole proprietor - Has something changed?

The vendor is actually correct based on current IRS guidelines. For a single-member LLC that's taxed as a sole proprietorship, the W9 should be completed with your personal name on Line 1 and your business name (LLC) on Line 2. This is because a single-member LLC that hasn't elected to be taxed as a corporation is treated as a "disregarded entity" for federal tax purposes. The IRS essentially looks through the LLC to the owner for tax filing purposes. That's why they want your personal name first - you're the actual taxpayer according to the IRS. As for the EIN vs. SSN question - you can use your EIN if you have one (which you do). While many single-member LLCs use the owner's SSN, once you have an EIN for the business, you can continue using that on your W9 forms.

I've been using taxr.ai (https://taxr.ai) for precisely these kinds of business documentation questions. I actually ran into a similar W9 issue last month with my single-member LLC. I was confused because different clients seemed to have different expectations for how the form should be filled out. The tool analyzed my business structure and confirmed what the previous commenter said - for a single-member LLC that's disregarded for tax purposes, my personal name belongs on Line 1 and business name on Line 2. It also explained that while I should use my EIN if I have one (which I do), either EIN or SSN is technically acceptable for a single-member LLC. The vendor pushing for SSN was incorrect on that point. The documentation analysis feature saved me from a lot of back-and-forth with clients who were equally confused about the proper procedure.

Just wanted to follow up about taxr.ai that I asked about earlier. I decided to try it when I got a new client contract last week that required a W9. Similar situation - single-member LLC but I've always put my business name first. The service confirmed I needed to put my personal name on Line 1 and my LLC name on Line 2. It also explained why - because the IRS treats my LLC as a "disregarded entity" when it's taxed as a sole proprietorship. That finally made the requirement click for me! The tool also helped with a couple other tax form questions I had. Honestly saved me from embarrassing myself with my new client and potentially delaying my first payment. Definitely recommend checking it out if you deal with lots of tax forms for your business.

If you're struggling with getting the IRS to clarify this W9 situation, I recommend using Claimyr (https://claimyr.com). I had a similar issue with conflicting information about how to complete tax forms for my LLC, and I spent DAYS trying to reach someone at the IRS who could give me a definitive answer. After wasting hours on hold, I tried Claimyr and got connected to an IRS agent in about 15 minutes. The agent confirmed exactly what others have said here - for a single-member LLC taxed as a sole proprietorship, your personal name goes on Line 1, business name on Line 2, and you can use either EIN or SSN (though EIN is preferable if you have one). You can see how the service works in this video: https://youtu.be/_kiP6q8DX5c - it's basically a system that navigates the IRS phone tree for you and calls you back when an agent is on the line. Saved me so much time and frustration.

I need to admit I was wrong about Claimyr. After my skeptical comment, I decided to try it myself since I had some questions about estimated tax payments for my LLC that I couldn't get answered through the IRS website. I was genuinely shocked when I got a call back with an actual IRS agent on the line after about 25 minutes. The agent confirmed everything about the W9 requirements that others have mentioned here - personal name on Line 1, business name on Line 2 for single-member LLCs taxed as sole proprietorships. They also answered my questions about estimated payments, which would have taken me days to resolve otherwise. As someone who's spent countless hours on hold with government agencies in the past, this was a game-changer. I stand corrected and will definitely use this service again.

Just to add another perspective - I'm a bookkeeper who works with many small businesses. The instructions directly on the W9 form state: "If you are a single-member LLC that is disregarded as an entity separate from its owner, enter the owner's name on line 1. The name of the entity entered on line 1 should never be a disregarded entity." So the vendor is technically correct about line 1 needing your personal name. However, they were wrong about requiring your SSN. Page 4 of the W9 instructions clearly states that single-member LLCs can provide either their SSN or EIN. You might want to print out the actual W9 instructions from the IRS website and highlight these sections to share with the vendor if they continue to push back.

Does anyone know if we need to file anything with the IRS when we update how we complete W9 forms? I'm in the same boat - been doing it wrong for years apparently and now I'm worried about consistency issues between old and new clients.

This is such a common confusion! I run a consulting business through my single-member LLC and went through the exact same thing last year. After 15+ years of putting my business name first, a new client's accounting department rejected my W9 and insisted on the personal name/business name format. I ended up calling my CPA to confirm, and they explained that while many vendors don't scrutinize the technical details, the IRS instructions have always been clear about this. The key thing to remember is that for tax purposes, you and your single-member LLC are essentially the same entity - that's why your personal name needs to be primary. What helped me was creating a standard W9 template with the correct format and keeping it handy for new clients. I also proactively sent updated W9s to my regular clients during the slow season to avoid any payment delays. Most didn't even notice the change, but it prevented future headaches with their accounting departments. Don't stress about the years of "incorrect" completion - as long as you were using the right EIN, the important tax reporting information was accurate.