Disregarded Entity LLC Which number goes where
Your return and your W-9 use your own number. Payroll, certain excise taxes and the bank use the LLC's EIN. Here's how each one works.
Your number and the LLC's EIN
Your income tax return uses your own Social Security number. That is where a disregarded LLC's profit is reported.
The LLC's EIN is for payroll, certain excise taxes, the bank, and any state account that asks for it. The IRS letter that assigned it is often called a CP 575. Keep it with your formation papers.
Both numbers can be right at the same time, because they do different jobs. A bank that opened the account under the LLC's EIN was right to ask for it, and your return still uses your own number.
How to fill in a W-9 for a disregarded LLC
Line 1: your own name, as it appears on your tax return.
Line 2: the LLC's name.
Line 3a: check the box for your own tax classification. For most owners that is individual or sole proprietor. Leave the LLC box for LLCs taxed as partnerships or corporations.
Part I: your Social Security number, or your own EIN if you have one as an individual. The W-9 instructions say a disregarded LLC enters the owner's number, not the LLC's EIN.
If your LLC elected to be taxed as a corporation, it is no longer disregarded. Then the LLC's name goes on line 1 and its EIN goes in Part I.
Questions about the two numbers
Does a disregarded entity LLC need an EIN?
Only if it has employees or files certain excise tax returns. Otherwise the IRS lets it use the owner's number. Banks and some states usually want one anyway, and getting one does not change how the LLC is taxed.
Which number goes on the 1099 a client sends me?
Whichever number you gave them on your W-9, which for a disregarded LLC is normally your own. Matching numbers make the 1099 line up with your Schedule C.
How do I get an EIN for my LLC?
Apply with the IRS. The online application is free and gives you the number right away. You can also file Form SS-4. Be careful of websites that charge a fee for the same thing.
I lost the letter with the LLC's EIN. Can I get it again?
Yes. The original CP 575 can't be reissued, but the IRS can send a confirmation letter, called a 147C, to the person listed as responsible for the LLC. Your bank statements and past payroll forms often show the number too.
I've been giving clients the LLC's EIN. What now?
It's a common mix-up and easy to sort out. We list who has which number, send corrected W-9s going forward, and check last year's 1099s against your return.
See the elections and deadlines
Sort out your numbers
Tell us which number your clients have been using. Then we'll match each client to the right number on a free 30-minute call.
You will be talking to the Steven Palmieri practice.