W9 Form Instructions for Single Member LLC - How to Complete Correctly

Wait, I thought the whole point of having an LLC was to separate yourself from the business? So why would I put my personal name and SSN on there instead of the business name and EIN? Wouldn't that defeat the purpose of limited liability?

The limited liability protection of an LLC is a legal concept separate from how it's treated for tax purposes. Having an LLC protects your personal assets from business liabilities, but for federal tax purposes, a SMLLC is "disregarded" by default, meaning the IRS looks through the LLC to the owner for tax reporting. Using your personal information on the W9 doesn't affect your liability protection at all - that's established by state law when you formed the LLC. It only affects how the income is reported for tax purposes. If you receive a 1099 for your work, it should match the name/TIN combination you provide on your W9.

Does this tool handle more complex situations? I have a SMLLC but I've elected to have it taxed as an S-Corp. Would it know the difference in how to fill out the W9 in that case?

Can it actually help with the liability questions too? My accountant charges me for every little question I have about my business paperwork, and I'm trying to figure out where the line is between tax treatment and actual liability protection.

It absolutely handles more complex situations like S-Corp elections. When you upload your documents, it specifically asks about your tax election status and adjusts the guidance accordingly. For an S-Corp election, it would tell you to use your EIN rather than SSN and would explain the different box to check. For liability questions, it covers the tax implications and basic structural guidance. While it's not legal advice, it does explain how different business formations impact your tax paperwork and separates tax treatment from liability concepts. I found that helpful because I was getting confused about when my business was separate from me and when it wasn't.

Wait, how does this even work? I thought the IRS phone lines were just permanently jammed. Does this actually jump the queue somehow? Seems too good to be true.

Yeah right. I'll believe it when I see it. I've literally spent DAYS of my life listening to that horrible IRS hold music. No way some service can magically get through when millions of people are calling.

It doesn't jump the queue - it just keeps calling and navigating the phone tree for you, then alerts you when someone actually picks up. So instead of you sitting on hold for hours, their system does it for you, and you only get on the phone when there's an actual human ready to talk. The reason it works is that most people give up after 30-60 minutes on hold. Their automated system doesn't give up. It just keeps trying different times and approaches until it gets through, then connects you. Nothing magical, just really practical when you have tax questions that only the IRS can answer definitively.

Do you know if there's any difference if you've elected to be taxed as a C-Corp instead of an S-Corp? My SMLLC has that election but I can never find clear guidance.

For a SMLLC that elected to be taxed as a C-Corporation, you'd handle it very similarly to the S-Corp example: - Line 1: Your business name - Line 2: (Can leave blank) - Check box: "C Corporation" - EIN: Use your business EIN The key thing to remember is that the W9 should reflect your tax status, not your legal business structure. So even though legally you're an LLC, for tax purposes you're being treated as a C-Corp, and that's what matters on the W9.

Does anyone have recommendations for tax software that handles SMLLC situations well? I've been using TurboTax but I'm not convinced it's giving me the right guidance for my specific situation.

@Isabella Silva This is exactly the kind of real-world experience I was hoping to hear! It s'reassuring to know someone else just went through this process recently. The looking "through the LLC explanation" really helps it click for me - I kept getting hung up on why I d'use my personal info when I have a business entity. Quick follow-up question: when you redid your W9 after putting the business name first initially, did you have to notify the client about the change, or could you just submit the corrected version? I m'worried about looking unprofessional if I have to go back and forth on this. Also, did you end up getting an EIN for your SMLLC even though you re'using your SSN on the W9, or did you skip the EIN altogether?

@Isabella Silva Great question about the EIN! I actually did get an EIN for my SMLLC even though I use my SSN on the W9. Here s'why that made sense for me: Even though a disregarded SMLLC uses the owner s'SSN for tax reporting, having an EIN can be useful for other business purposes - opening business bank accounts, applying for business credit, and some clients/vendors prefer to have an EIN on file even if you re'using your SSN for tax forms. As for the W9 correction, I caught my mistake before submitting it to the client, so I didn t'have to explain the change. But honestly, if you do need to send a corrected version, most clients understand that tax forms can be tricky. You could just say something like I "wanted to double-check the tax requirements and need to send you an updated W9 to ensure proper reporting. The" IRS has pretty specific guidelines on this stuff, so getting it right is more important than avoiding a brief conversation with your client. They d'much rather have the correct form now than deal with 1099 issues later!

@Ravi Gupta This is incredibly helpful timing advice! I m'actually the original poster @StarStrider (and) I really appreciate you emphasizing not to rush into tax elections. I was starting to second-guess whether I should have made an S-Corp election after reading some of the comments here, but you re'absolutely right that I shouldn t'make hasty decisions just to meet a Friday deadline. Your point about keeping a template copy is brilliant - I can already see myself needing this for multiple clients going forward. Quick question: when you say ongoing "compliance requirements for" S-Corp elections, what kind of additional work are we talking about? I want to make sure I understand what I d'be getting into if I consider that option down the road. For now, I m'definitely going with the disregarded entity approach as you and others have recommended. Thanks for helping me stay focused on what I actually need right now versus getting distracted by more complex options!