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You've worked hard to build your business from the ground up, putting in countless hours and pouring your heart into every detail. Then you land a major client—one that could take your business to the next level. You're excited, and then... they ask you for a W-9 form.
At first, you might think, "No problem, just another piece of paperwork." But as you sit down to fill out the form, you realize it's not as straightforward as you thought.
Do you use your Social Security Number (SSN) or Employer Identification Number (EIN)? Should you list your LLC's legal name or the trade name you've been using? And what about the tax classification—do you check the box for a corporation, a sole proprietor, or something else entirely?
In this guide, we'll walk you through the process of filling out a W-9 form for your LLC, step by step.
What is the W-9 Form?
The W-9 form, officially titled the "Request for Taxpayer Identification Number and Certification," is an IRS document used to gather taxpayer information.
When a business or financial institution needs to report certain types of income paid to an individual or entity, they request a W-9 form to obtain the correct taxpayer identification number (TIN) and other important details.
For LLCs (Limited Liability Companies), filling out a W-9 is a common requirement when engaging in business activities with clients, vendors, or financial institutions. The IRS uses the information on the form to track income and ensure proper taxation.
The purpose of the W-9 is to capture your LLC's taxpayer identification number, which could be a Social Security Number (SSN) for a single-member LLC taxed as a sole proprietorship or an Employer Identification Number (EIN) for multi-member LLCs and those taxed as corporations or partnerships.
This number is then used by the entity requesting the form to report payments made to your LLC, such as payments for services rendered or interest income, on the relevant 1099 forms filed with the IRS.
However, the W-9 form is not submitted to the IRS. Instead, it is retained by the requester—often a client or financial institution—and used to ensure that the correct taxpayer information is reported to the IRS.
Who Needs to Fill Out a W-9?
Any U.S.-based business or individual that earns income as a freelancer, independent contractor, or from other sources where taxes are not automatically withheld is required to fill out a W-9 form.
This includes LLCs (Limited Liability Companies), which often need to provide a W-9 when they engage in business activities with clients or other companies that require them to report payments to the IRS.
Situations Requiring a W-9 for LLCs
If your LLC provides services to another business or individual, you will likely be asked to complete a W-9 form.
This is because the entity paying you needs your Taxpayer Identification Number (TIN) or Employer Identification Number (EIN) to report the payments made to your LLC on a 1099 form at the end of the tax year.
Common situations where your LLC might need to fill out a W-9 include:
Freelance or Contract Work
If your LLC provides freelance services, consulting, or contract work, the businesses or individuals paying you will often request a W-9 to have your LLC’s information for their tax records.
Rent or Lease Income
If your LLC earns income from renting or leasing property, the property management company or tenant may request a W-9.
Vendor or Supplier Agreements
If your LLC sells goods or services to other businesses, those businesses might request a W-9 to ensure they have the correct information for reporting purposes.
Earnings from Investments
If your LLC earns income from dividends, interest, or other investments, the financial institution managing the investments may require a W-9.
Information Needed Before You Start
You must gather some information before filling out the W-9 form for your LLC. Having these details on hand will help you avoid mistakes that could delay processing. These include:
Taxpayer Identification Number (TIN) or Employer Identification Number (EIN)
Your LLC must provide a Taxpayer Identification Number (TIN) on the W-9 form. For most LLCs, this will be the Employer Identification Number (EIN) issued by the IRS. The EIN is a unique nine-digit number the IRS assigns to businesses for tax purposes.
Single-Member LLCs
If your LLC is a single-member disregarded entity, you might use your Social Security Number (SSN) as the TIN. However, it’s advisable to use an EIN instead to separate personal finances from business finances.
Multi-Member LLCs
An EIN is required for LLCs with multiple members. If you don’t have an EIN yet, you can apply for one through the IRS website. It’s a quick process, and the EIN is usually issued immediately.
Legal Name of the LLC
The legal name of your LLC should match exactly what’s registered with the IRS and what appears on your formation documents. This name will be entered in the first box of the W-9 form.
- Tip: Double-check your formation documents or your EIN confirmation letter to ensure you’re using the correct name. Even a minor error, like an abbreviation or missing word, can cause issues.
Business Classification
Understanding how your LLC is classified for tax purposes is important when filling out the W-9. Your tax classification will determine which box you check in Part I of the W-9 form, so it’s important to know this before you start. Your LLC can be taxed as a:
- Disregarded Entity (Single-Member LLC): If you’re the sole owner, your LLC is usually treated as a disregarded entity, meaning it’s not separate from you for tax purposes. You’ll report the LLC’s income on your tax return.
- Partnership (Multi-Member LLC): If your LLC has multiple members, it’s classified as a partnership. The LLC itself doesn’t pay taxes, but each member reports their share of the profits on their tax returns.
- Corporation (C-Corp or S-Corp): Some LLCs choose to be taxed as a corporation. If you’ve elected S-Corp or C-Corp status with the IRS, you must check the corresponding box on the W-9.
Step-by-Step Guide to Filling Out the W-9 for an LLC
Below is a step-by-step guide to help you go through each part of the form:
Step 1: Enter Your LLC's Legal Name
Your LLC’s legal name is the name under which your LLC is officially registered with the IRS and your state's business registry.
The legal name of your LLC is important because it must match exactly with the name on your IRS records. Any discrepancies can delay the processing of your W-9 form, cause incorrect tax reporting, or even IRS penalties.
You can find your LLC's legal name on documents like Articles of Organization, EIN confirmation letter, and your state’s business registry.
When filling out the W-9 form, you'll find the first line labeled “Name (as shown on your income tax return).” Here’s what to do:
- Enter the full legal name of your LLC exactly as it appears in your official documents. This includes any punctuation, capitalization, and spacing.
- Do not abbreviate or shorten the name. If your LLC is registered as “Smith & Johnson Consulting, LLC,” ensure you write it out fully, including the “LLC” suffix.
- If your LLC is a disregarded entity (e.g., a single-member LLC), you may need to enter the owner's name on the second line. However, the legal name of the LLC should always be listed on the first line.
- If your LLC operates under a different business name (a DBA or “Doing Business As” name), only the legal name should be entered in this section. The DBA can be listed on the second line if needed.
- If your LLC has recently changed its name, ensure the change has been officially updated with the IRS before filling out the W-9 form with the new name.
Step 2: Business Name/Disregarded Entity Name (If Applicable)
In this section of the W-9 form, provide the business name if it differs from the LLC's legal name or if your LLC is considered a disregarded entity.
Here are situations when you should fill out this section:
- If your LLC is a single-member LLC and you have chosen to be treated as a disregarded entity for tax purposes, this section is relevant to you. You should enter the name of the LLC's owner (which could be you personally or another business entity) in this field. For instance, if Jane Doe owned a single-member LLC called “Doe Consulting,” and she had elected for her LLC to be treated as a disregarded entity, she would have entered "Jane Doe" in this field.
- If your LLC operates under a different name than the legal name registered with the state (a DBA or trade name), you should enter that name here. This ensures that payments and tax documents issued under your DBA name are correctly linked to your LLC. For instance, if “Doe Consulting LLC” operates under the trade name “Doe Marketing Solutions,” you would enter “Doe Marketing Solutions” in this section.
Step 3: Check the Appropriate Tax Classification Box
This step determines how your LLC is taxed and reported to the IRS. The IRS provides several tax classification options, and you must understand which one applies to your LLC.
By default, the IRS does not recognize an LLC as a separate tax entity. Instead, the LLC’s income is passed through to the owners, and the tax treatment depends on the number of members in the LLC.
Single-Member LLC
If your LLC has only one member, it is automatically treated as a Disregarded Entity. This means the LLC’s income and expenses are reported on the owner’s tax return, typically using Form 1040, Schedule C.
If you’re a single-member LLC, check the box labeled “Individual/sole proprietor or single-member LLC.” Don’t check this box if your single-member LLC has elected to be taxed as a corporation.
Multi-Member LLC
An LLC with more than one member is classified as a Partnership by default. The LLC itself doesn’t pay taxes; instead, it files an informational return (Form 1065), and each member reports their share of the profits on their tax returns.
If your LLC is a multi-member LLC taxed as a partnership, check the box labeled “Partnership.”
LLC Electing to be Taxed as a Corporation
If your LLC has elected to be taxed as an S Corporation (using Form 2553), you will check the box labeled “S Corporation.” This allows the LLC to pass income, losses, deductions, and credits through to its shareholders for federal tax purposes.
If your LLC has elected to be taxed as a C Corporation (using Form 8832), check the box labeled “C Corporation.” In this classification, the LLC is treated as a separate tax-paying entity, and the profits are taxed at the corporate level.
However, if your LLC is classified as a trust or estate for tax purposes, you should check the box labeled “Trust/estate.” This is rare for LLCs, but it can apply to specific legal arrangements.
Step 4: Enter the LLC's Address
In this step, you'll need to provide the address of your LLC where it receives its official correspondence.
Accurate address information ensures that the W-9 form reaches the appropriate party and helps avoid any issues with the IRS or other agencies.
Here are tips for entering the LLC’s address:
Locate the Correct Address
This should be the address where your LLC receives business-related mail. This is typically the address you used when registering your LLC with the state or the address you use for tax correspondence.
Input the Address Information
- Enter the full street address of your LLC. Include any suite, apartment, or unit numbers if applicable. Ensure there are no typos or missing digits.
- Write the city where your LLC’s office or primary place of business is located.
- Select or write the two-letter abbreviation for the state where the LLC is based. For example, use "CA" for California or "TX" for Texas.
- Enter the five-digit ZIP code for your LLC’s address. If you have a ZIP+4 code, you can include it, though it is not mandatory.
Double-Check the Address
Verify that the address matches the one on file with the IRS or any official business documents. An incorrect address could delay processing or result in the form being returned.
Step 5: Provide Your TIN or EIN
The Taxpayer Identification Number (TIN) is a general term for numbers the IRS uses to track taxpayer obligations. For most LLCs, the TIN is the same as the EIN.
On the other hand, the Employer Identification Number (EIN) is a specific type of TIN the IRS uses to identify business entities. It is required for most LLCs, especially if they have employees, are taxed as corporations, or file certain tax returns.
If you are not sure whether your LLC has an EIN or if you need to locate it, here’s to find it:
- Your EIN is listed on documents such as the IRS notice you received when you applied for the EIN, your LLC's tax returns, or other official correspondence from the IRS.
- If you’ve previously filed tax forms or applied for business licenses, your EIN might be listed there.
- If you cannot locate your EIN, you can call the IRS Business & Specialty Tax Line at 1-800-829-4933. They can assist you in retrieving it after verifying your identity.
Follow these steps to enter the EIN on the W-9 form:
- Find a section labeled "Part I: Taxpayer Identification Number (TIN)" on the W-9 form.
- In the space provided, enter your EIN. This should be a nine-digit number formatted as XX-XXXXXXX. Ensure there are no spaces or dashes beyond the format provided.
- Confirm that the EIN you enter matches the number issued by the IRS. Any errors can lead to complications with tax reporting and potential delays.
Step 6: Certification
Once you have filled out all the required information on the W-9 form, certify that the information you have provided is accurate and complete. This process legally binds you to the accuracy of the submitted details.
In the certification section of the W-9 form, you are required to affirm several important statements:
Accuracy of Information
By signing the W-9 form, you certify that the information provided is true, correct, and complete to the best of your knowledge. This includes the accuracy of your LLC’s name, tax classification, and TIN or EIN.
Taxpayer Identification Number (TIN) Compliance
You are confirming that the TIN or EIN provided on the form is your correct taxpayer identification number and that you are not subject to backup withholding.
Exemption from Backup Withholding
If applicable, you are also certifying that you are exempt from backup withholding. Most LLCs will not be subject to backup withholding, but it’s essential to verify this based on your specific tax situation.
U.S. Citizenship or Resident Status
You are confirming that you are a U.S. citizen or resident alien. Non-resident aliens and foreign entities typically do not use the W-9 form, instead they use Form W-8.
Step 7: Signature
The signature section of the W-9 form validates the information provided and affirms that it is accurate.
An authorized representative of the LLC should sign the W-9 form. This could be a member or manager of the LLC who has the legal authority to sign documents on behalf of the company. For a single-member LLC, the owner should sign.
To sign the form;
- Write the full name of the person authorized to sign the form. This should be done in the designated space under "Signature of U.S. person" on the W-9.
- Enter the date on which the form is signed. This should be the date you are completing and signing the W-9.
- Indicate the title or position of the person signing the form. For example, “Managing Member,” “President,” or “Owner” if applicable. This helps to clarify the authority of the individual who signed the form.
Wrapping Up
Properly filling out a W-9 form helps LLCs ensure accurate reporting and compliance with IRS regulations.
The steps discussed in this guide will help LLC owners complete the form and avoid common errors that could lead to issues with their tax filings.
If you require further clarification, visit the IRS website or seek advice from a tax advisor. These will help you manage your LLC’s tax responsibilities effectively and avoid any potential issues.
FAQs
Who should sign the W-9 for an LLC?
The person who signs the W-9 for an LLC should be authorized to sign tax returns for the LLC. This can be:
- The sole member: If the LLC is a single-member LLC and is disregarded for tax purposes.
- A designated member or manager: If the LLC is a multi-member LLC.
- An authorized officer or agent: If the LLC is taxed as a corporation.
The person signing the W-9 must be a U.S. person (citizen or resident alien).
Is there a fee for filling out a W-9 form?
No, there is no fee to fill out a W-9 form. It's a free IRS form used to collect taxpayer information.
Where can I find a blank W-9 form?
You can find a blank W-9 form on the IRS website. You can also find a link to the W-9 form on many state government websites.
