When should I use my Single Member LLC EIN vs my Sole Proprietorship EIN for tax filings?

I've got myself in a bit of a paperwork mess with my business and EINs, hoping someone can help sort this out. I started my photography business as a sole proprietorship a few years back and got an EIN (let's call it 11-1111111) so I wouldn't have to give out my SSN on W9 forms to clients. Last year, I converted the business to a single-member LLC for liability protection but kept operating it as a disregarded entity for tax purposes. According to the IRS rules, I didn't technically need a new EIN since I have no employees and don't file as a corporation. But when I set up with Square for payment processing, they required me to have an EIN specifically for the LLC. So I applied and got a second EIN (let's say 22-2222222) just to satisfy Square's verification process. Now I'm confused about which EIN to use where. The IRS instructions for W9 forms say NOT to use the disregarded entity's EIN, but instead use the owner's SSN or EIN (which would be my sole prop EIN). The Schedule C instructions seem to say the same thing - that I should only use the LLC's EIN for qualified retirement plans, employment taxes, excise taxes, etc., none of which I have. My biggest worry is what happens when Square sends me a 1099-K with my LLC's EIN (22-2222222). Since I'm not supposed to put that EIN anywhere on my tax return according to IRS instructions, will this create problems? Will the IRS think I'm not reporting income associated with that EIN? I've asked a couple of accountant friends and they seem stumped by this situation too. Anyone deal with something similar?

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25 comments

Jabari-Jo

•8M

This is a common confusion point but the answer is pretty straightforward! As a single-member LLC that's disregarded for tax purposes, you'll always use your original sole proprietorship EIN (11-1111111) on your tax forms, including your Schedule C. When you receive a 1099-K with your LLC's EIN (22-2222222), you'll still report that income on your personal tax return with your sole prop EIN. The IRS computer systems can link these together based on your SSN, which is attached to both EINs in their database. To avoid future confusion, I'd recommend including both EINs in a statement attached to your tax return. Simply explain that you're a single-member LLC operating as a disregarded entity, list both EINs, and note that income reported under the LLC EIN (22-2222222) is being reported on your return under the sole prop EIN (11-1111111). You might also want to contact Square and see if they can update their records to use your sole prop EIN going forward, though payment processors often insist on using the entity name that matches your bank account.

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Jabari-Jo

•8M

You don't need to file any additional tax forms to link the EINs - the explanation statement attached to your return is sufficient. The IRS systems already have both EINs connected to your SSN in their database. For W9 forms, you should list your business name as "[Your Name] DBA [LLC Name]" and use your sole proprietorship EIN. The W9 instructions are clear that for a disregarded single-member LLC, you should not use the LLC's EIN. This applies even though you're operating as an LLC now, because for federal tax purposes, you're still considered a sole proprietorship (the LLC is "disregarded").

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Micah Trail

•8M

I went through this exact headache last year with my consulting business! I was using Stripe and they demanded an EIN that matched my LLC name exactly. I ended up at https://taxr.ai after struggling with conflicting advice from two different accountants. They have a specific tool that analyzes your business structure and tells you which EIN to use in different situations. For me, they confirmed I needed to keep using my sole prop EIN on tax filings while using the LLC EIN for payment processors. The best part was they provided a template letter explaining the EIN situation that I attached to my tax return. The IRS processed everything without a hitch - no letters or questions about the 1099-K that had my LLC's EIN.

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Micah Trail

•8M

The service works by analyzing your specific business situation. You upload your formation documents, EIN assignments, and answer questions about how you operate. Their system then gives you specific guidance for your exact situation. What makes their advice valuable is they specialize in exactly these weird edge cases that generalist accountants sometimes struggle with. The template letter they provided explicitly addressed the 1099-K reporting mismatch between my LLC EIN and sole prop EIN, which is exactly what OP is worried about. It's not about replacing an accountant but getting specialized guidance on this specific issue.

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Nia Watson

•8M

So glad I found this thread! I tried taxr.ai after seeing it mentioned here and it was exactly what I needed. I have a single-member LLC for my graphic design business and was getting conflicting advice about EINs. They confirmed I should use my sole prop EIN on tax documents but explained why payment processors require the LLC's EIN. The documentation they provided actually walked through the exact scenario - payments received under LLC EIN reported on taxes under sole prop EIN. My CPA was impressed with how thorough their explanation was and we used their template for my tax filing. Just got my refund without any issues even though I had 1099-Ks with different EINs than what appeared on my Schedule C.

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Katherine Shultz

•8M

I spent THREE DAYS trying to get the IRS on the phone about this exact issue and kept getting disconnected. Finally used https://claimyr.com (saw a demo at https://youtu.be/_kiP6q8DX5c) and they got me connected to an IRS agent in about 20 minutes who confirmed everything. The agent explained that this happens all the time and isn't a problem. Single-member LLCs use the owner's EIN or SSN for tax purposes while sometimes needing a separate EIN for banking. They told me the IRS system will match up the 1099-Ks with my return based on my SSN, even if the EINs don't match. She even noted my account with an explanation to prevent confusion. Seriously wish I'd known about this service before wasting days on hold!

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Katherine Shultz

•8M

They don't call the IRS for you - instead, their system navigates the IRS phone tree and waits on hold in your place. When they reach a live agent, you get a call to connect with the agent. So you skip the whole waiting-on-hold nightmare. I was totally skeptical too! I had already spent hours trying different IRS numbers and extensions with no luck. But the service actually works - they use technology to stay on hold instead of you. I did still have to talk to the IRS myself once they got an agent, but that's the point - you actually get to speak to someone instead of getting disconnected after waiting for hours.

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Alberto Souchard

•8M

Ok I need to publicly eat my words about Claimyr. I was completely skeptical after seeing it mentioned here, but I was desperate after my 8th attempt to reach the IRS about my own EIN issue. It actually worked exactly as described. Their system waited on hold with the IRS (took about 90 minutes according to their tracker) while I did other work. Then I got a call connecting me directly to an IRS representative who solved my problem in about 10 minutes. The agent confirmed everything about the single-member LLC situation too - said as long as I'm reporting all income, the difference in EINs between my 1099-K and Schedule C won't trigger any issues. They can see both EINs are connected to my SSN in their system. Honestly shocked this service exists and actually works as advertised.

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Hailey O'Leary

•8M

I'm a bookkeeper who deals with this confusion ALL THE TIME with clients. Here's what I tell them: 1. Your LLC is a fancy hat your business wears for legal protection 2. For taxes, the IRS ignores that fancy hat (because it's "disregarded") 3. Use your ORIGINAL EIN (the sole prop one) on Schedule C 4. Attach a simple statement explaining both EINs belong to you 5. Report ALL income regardless of which EIN is on the 1099s It's super common to have payment processors requiring the LLC's EIN while the IRS wants you to use the sole prop EIN. The computer systems at the IRS can handle this mismatch as long as you're consistent and transparent.

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Hailey O'Leary

•8M

Yes, this applies to your situation too. On Schedule C, you should list your name as the business name (since you're a sole proprietor for tax purposes), but you can include "DBA [Your LLC Name]" on the business name line. For the EIN/SSN, since your 1099-NECs already have your SSN, you're actually in a simpler situation than the original poster. Just use your SSN consistently on your Schedule C. The IRS considers the income as flowing directly to you as an individual since the LLC is disregarded for tax purposes.

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Jabari-Jo

•8M

If you've been consistently using the LLC's EIN on everything and it's working for you, you can probably continue doing so. The most important thing is consistency. However, technically, the IRS instructions do state that a single-member LLC that's disregarded for tax purposes should use the owner's SSN or EIN (if the owner has one) on W9 forms, not the LLC's EIN. For Schedule C, you should only list the LLC's EIN if it's for a specific purpose like employment taxes or excise taxes. If you want to be completely by-the-book, you might consider using your SSN going forward, but you should consult with a tax professional before making changes to an established pattern.

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Ella Cofer

•5M

This is such a helpful thread! I'm dealing with a similar situation but with a twist - I have a single-member LLC that I've elected to treat as an S-Corp for tax purposes. I got an EIN specifically for the LLC when I made the S-Corp election, but now I'm wondering if the advice here still applies. Should I be using my original sole prop EIN from before the LLC formation, or does the S-Corp election change things? I'm assuming since I'm no longer a disregarded entity, I need to use the LLC's EIN for everything now, but I want to make sure before I mess up my tax filings. Also, has anyone dealt with state tax implications of having multiple EINs? My state seems to track businesses by EIN and I'm worried about creating confusion there too.

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Yuki Ito

•4M

Great question! Your S-Corp election completely changes the situation - you're absolutely right that the advice here doesn't apply to you anymore. Once you elected S-Corp status, your LLC is no longer a disregarded entity, so you should be using your LLC's EIN for everything (W9s, tax filings, etc.). With the S-Corp election, you'll be filing Form 1120S using the LLC's EIN, not Schedule C with your sole prop EIN. The income flows through to your personal return via K-1, but the business entity is now recognized separately by the IRS. For state taxes, you're right to be concerned about confusion. Most states do track by EIN, so you may want to contact your state tax authority to clarify which EIN they have on file for your business and make sure they understand the S-Corp election. Some states require separate notification when you make federal elections like this. I'd definitely recommend consulting with a tax professional who specializes in S-Corp elections to make sure you're handling everything correctly, especially the payroll requirements that come with S-Corp status.

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Sofia Morales

•3M

This is exactly the kind of EIN confusion that trips up so many small business owners! You're not alone in this - I see this scenario constantly in my work helping folks navigate business tax issues. The key thing to remember is that your single-member LLC is "disregarded" for federal tax purposes, which means the IRS treats you as if the LLC doesn't exist when it comes to taxes. So yes, you should continue using your original sole proprietorship EIN (11-1111111) on your Schedule C and other tax forms. When Square sends you that 1099-K with your LLC's EIN (22-2222222), don't panic! The IRS systems are actually pretty good at connecting the dots. Both EINs are tied to your Social Security Number in their database, so they can match the income even if the EINs don't align perfectly on your return. That said, I'd recommend adding a brief statement to your tax return explaining the situation - something like "Income reported on 1099-K under LLC EIN 22-2222222 is included in Schedule C business income reported under sole proprietorship EIN 11-1111111." This creates a clear paper trail and shows the IRS you're being transparent about the discrepancy. For future W9 forms, stick with your sole prop EIN as the IRS instructions specify. I know it feels weird when you're operating as an LLC, but remember - for tax purposes, you're still essentially a sole proprietor with some extra legal protection.

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Eli Butler

•2M

This is really reassuring to hear from someone who deals with this regularly! I was getting so stressed about the potential mismatch between my 1099-K and Schedule C EINs. Quick follow-up question - when you mention adding a statement to the tax return, do you just attach it as a separate document, or is there a specific form or section where this explanation should go? I want to make sure I do this correctly and don't accidentally create more confusion for the IRS. Also, have you seen any issues with payment processors like Square getting confused when clients try to update their EIN information later, or is it usually best to just leave it as-is once it's set up?

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Sophia Rodriguez

•16d

For the statement explaining the EIN situation, you can simply attach it as a separate document to your tax return. I usually title it something like "Statement Regarding Multiple EINs" and keep it brief but clear. You don't need any special form - just a simple typed explanation that references both EINs and explains that all income is being reported under your sole proprietorship EIN. Regarding payment processors, I've found it's generally better to leave the setup as-is once it's working. Square and similar processors can be really finicky about EIN changes, and sometimes updating the information creates more verification headaches than it solves. Since the IRS can handle the EIN mismatch just fine (especially with your explanatory statement), there's usually no compelling reason to mess with a working payment processing setup. The main thing is consistency on the tax side - always use your sole prop EIN for tax documents and W9s, and let the payment processors use whatever EIN they need for their verification purposes.

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Declan Ramirez

•9d

This thread has been incredibly helpful! I'm dealing with a very similar situation with my web design business. I started as a sole prop, got an EIN for client W9s, then formed an LLC but kept it as a disregarded entity. PayPal required the LLC's EIN for their business account setup, so now I have two EINs just like the OP. Reading through all these responses, it sounds like the consensus is pretty clear - keep using the sole prop EIN on tax forms and W9s, and don't worry about the 1099-K having the different EIN. The explanatory statement approach mentioned by several people here seems like the smart way to handle it. One thing I'm curious about though - has anyone actually had the IRS question or audit them specifically because of this EIN mismatch situation? All the advice here makes sense logically, but I'm wondering if there are any real-world examples of this causing problems down the road, or if it really is as straightforward as everyone is saying. Also, for those who mentioned contacting the IRS directly about this - did you call the general taxpayer assistance line, or is there a specific department that handles business EIN questions?

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