W-9 Information for Single-Member LLCs
A single-member LLC classified as a disregarded entity must use the owner’s SSN or EIN on a W-9. The LLC’s EIN must be used if it has employees or files certain tax forms for employment and excise taxes.
Reasons for Obtaining an EIN for a Single-Member LLC
- To open a business bank account
- To use as the identification number for certain employment and excise taxes
- To open a solo 401k retirement account
Using EIN vs. SSN on W-9
Generally, a single-member LLC should use the owner’s SSN or EIN, not the LLC’s EIN, on a W-9. The LLC’s EIN should be reserved for employment and some excise taxes if applicable. However, if the LLC elects to be taxed as an S-corp or C-corp, then the LLC’s EIN would be appropriate.
When a client has the LLC’s EIN but the LLC owner pays taxes under their SSN, the IRS links these two numbers for tax purposes. The income reported under both IDs is aggregated as belonging to the LLC owner at tax time.