Form W-9 for LLC | Filling Out W9 for LLC (2024)

FAQs

How should an LLC fill out a W9? ›

If you are a sole proprietor or single-member limited liability company (LLC), you should enter your own name on Line 1 as well. Partnerships, multiple-member LLCs, C corporations, and S corporations should enter the entity's name as shown on the entity's tax return. The second line is for your business's name, if any.

The purpose of a W-9 form is to create an official record of a business relationship between a company and an individual who is not a regular employee. It is a record of the vendor that has their taxpayer identification information, making it easier to create a 1099-MISC and file taxes during tax time.

You must show your individual name and you may also enter your business or “doing business as” name on the “Business Name/disregarded entity” name line. You may use either your SSN or EIN (if you have one) but the IRS encourages you to use your SSN.

Number of members determines default classification

A single member LLC is disregarded for federal tax purposes and is treated as a sole proprietorship whose owner must file a Schedule C with their Form 1040. If there is more than one member, then, by default, the LLC is treated as a partnership.

Payments earned by a contractor who completes a W-9 form aren't subject to IRS withholding, meaning it's the payee's responsibility to report the income and pay the self-employment taxes, which is calculated at a rate of 15.3 percent as of 2022.

If you ever find yourself filling out a Form W-9, it generally means a business or person who is paying you money needs your U.S. Taxpayer Identification number (TIN)–which can be the U.S. Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or Federal Employer Identification Number (EIN/FEIN ...

Classifications. Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC's owner's tax return (a “disregarded entity”).

Can you fill out a W-9 without a business? Yes. If you are an independent contractor without a business, you will still need to fill out a W-9 as an individual, a sole proprietor, or a single-member LLC. Simply fill under your name and SSN to file form W-9 without a business.

Does an LLC need to fill out a W9? ›

If your limited liability company (LLC) works with any business partners (which it probably does!), you may be asked to fill in and submit a W-9 form. That's a standard request for ensuring federal tax compliance.

Failing to do so could prove troublesome after beginning the work. Therefore, before starting any work with a person or business, be sure to ask for a Form W-9 if they haven't already provided you with one. Failing to do so could make you required to pay withholding taxes on the money that you pay them.

LLCs taxed as S corporations typically do not receive 1099 forms due to their tax classification, but it's important to confirm the LLC's tax status with Form W-9.

Is my LLC an S or C Corp? You can elect for an LLC to be taxed as an S Corp or a C Corp by filing the proper paperwork with the IRS. If you run an LLC, it's automatically taxed as a sole proprietorship or partnership, but you can elect to be taxed as a corporation instead.

The “individual/sole proprietor or single-member LLC” box is the appropriate box to check for: • An individual, • A sole proprietorship, or. • A single-member limited liability company (LLC) owned by an individual and disregarded for U.S. federal tax purposes.

A W-9 form is used by independent contractors and freelancers to document identifying information. The 1099 forms are prepared by the business that hires the contractor when they work together and sent to the contractor at the end of the calendar year.

LLC owners can lessen their individual self-employment taxes by changing their tax classification to a C corp or an S corp, while keeping the LLC structure. Self-employment taxes are 15.3%, and include 12.4% for Social Security and 2.9% for Medicare.