How to Fill Out a W9 for an LLC Disregarded Entity

What is an LLC disregarded entity?

An LLC disregarded entity is a single-member LLC that is taxed as a sole proprietorship. The LLC structure keeps the business entity separate from its owner, but instead of the single-member LLC filing its own tax return, the owner reports all income and expenses on their personal tax return. This is known as pass-through taxation.

Although your disregarded LLC doesn’t file income tax returns as a separate entity, you might still need an employer identification number (EIN) if you have employees or need it for other federal income tax purposes, like paying excise taxes. Otherwise, you can use your Social Security number (SSN).

How to complete a W-9 form for an LLC disregarded entity

With all these different numbers and classifications, filling out tax forms can get complicated. Here's how to fill out a W-9 for an LLC classified as a disregarded business entity.

Line 1: Name

On Line 1, write your full legal name exactly as it appears on your personal tax return. Listing the LLC’s name instead of your own can cause confusion for the requester or lead to errors when payments are reported. Because you pay taxes through your personal return, using your own name on this line helps the Internal Revenue Service (IRS) match the information to your tax records.

Line 2: Business name/disregarded entity name

On Line 2, enter the name of your LLC exactly as it is on your business formation documents. This field is important if the name associated with your LLC is different from your personal name because it gives the requester another way to identify you. For example, if you’re doing business as (DBA) name is "Smith Consulting LLC" but you report income under your own name, adding the LLC’s name here helps the requester keep their records consistent. If there’s no DBA or additional business name, you can leave this line blank.

Line 3: Federal tax classification

On Line 3, the entity classification election, check the "Individual/sole proprietor or single-member LLC" box. As a disregarded entity, you have the protection of an LLC for business and liability purposes. However, for income tax purposes, you are treated like a sole proprietorship, so remember to mark the single-member option. Selecting this classification lets the requester know how your income will be reported, and checking the wrong box could cause tax filing issues.

Line 4: Exemptions

Leave this line blank unless your business is exempt from backup withholding. Backup withholding is a tax withholding requirement that applies when there’s an issue with your Taxpayer Identification Number (TIN) or if you’re subject to certain IRS requirements. Most disregarded LLCs don’t qualify for this exemption, but if you believe yours does, you may need to consult a tax professional before filling out this line.

Lines 5 & 6: Address

On Lines 5 and 6, provide the full address for your business. This is the address where you receive mail and should be the same address you use on your personal tax return. The requester will use this address to send you important documents, such as 1099 forms, so make sure it’s current and correct to avoid delays in communication or payments.

Line 7: Account number(s)

You only need to include an account number if the requester asks for one. This section is used to link the W-9 to a specific account, such as a vendor or client account, in the requester’s system. If you’re not asked to provide an account number, you can leave this line blank.

Part I: Taxpayer Identification Number

In Part I, a disregarded LLC must provide either the member's Social Security number (SSN) or the EIN that you've obtained in your capacity as the owner. Although a disregarded LLC is a separate entity, you’ll most likely use your SSN. However, if your single-member LLC formed after 2008 and has employees, you must obtain an EIN for the entity to pay employment tax. In these cases, you should report the EIN on Form W-9.

Part II: Certification

In Part II, read the certification. Understand that it is under penalty of perjury. Confirm that the information you provided is correct. Additionally, you are confirming that you're not subject to backup withholding, that you're a U.S. citizen, and that the information you entered on Line 4 is correct if this applies to you.

Sign and date your W-9 to confirm that all the information you’ve provided is accurate. A completed and signed form is required for it to be valid. If you skip this step, the requester may reject the form or delay payments to you.

Next steps after completing a W-9 form

Submit your complete W-9 to the person or business that requested it, such as a client, vendor, or financial institution—not to the IRS. The requester uses the information on your W-9 to report payments made to you for federal tax purposes and prepare necessary documents, like Form 1099, at the end of the year. Don’t forget to keep a copy for your records. That way, if you move or begin using a new TIN, you can easily submit a new W-9 to avoid errors or miscommunication.

Common mistakes to avoid

Avoiding errors on Form W-9 is key to preventing delays or income tax reporting problems. Here are common mistakes and how to avoid them:

• Listing the LLC’s name on Line 1. Always enter your full legal name on Line 1 since the IRS links single-member LLC income to your individual tax return. Using the LLC’s name here may cause processing issues for the requester or errors on tax documents.
• Leaving Line 2 blank when operating under a DBA. If your business has a DBA or another registered name, include it on Line 2 to make sure the requester can match your form to their records.
• Using the LLC’s EIN when your SSN is required. Unless you’re using an EIN for specific tax obligations, such as excise tax liability or employment tax, use your SSN on Part I. Including the wrong Taxpayer Identification Number may lead to incorrect reporting or backup withholding.
• Checking the wrong tax classification box. For a disregarded LLC, always select "Individual/sole proprietor or single-member LLC." The wrong entity classification election can lead to incorrect tax treatment and confusion.
• Skipping the signature and date. Without a signature, the W-9 is invalid. Double-check the form before sending it to confirm you’ve signed and dated it.
• Failing to update outdated information. If your address, Taxpayer Identification Number, or legal name has changed, fill out a new Form W-9 and provide it to the requester. Keeping your information current prevents errors in tax reporting or delays in payments.

How to fill out a W-9 for an LLC is just one thing small business owners need to think about. From getting an EIN to filing annual reports and making sure your business stays in good standing, even a single-member LLC owner might have a lot on their mind. LegalZoom can help with many of these tasks so you can focus on success. Check out our business services to see what we can do for you.

FAQs

What is a W-9 form, and who needs one?

Form W-9 is used to provide your taxpayer identification information to a business or individual that pays you so they can fill out tax documents like Form 1099. If you’re an independent contractor, sole proprietorship, or single-member limited liability company, you’re responsible for paying self-employment taxes on this income. You’ll need to fill out this form for clients or financial institutions that report payments for federal tax purposes.

Does a disregarded entity need an SSN or EIN for a W-9?

Most disregarded entities use the owner’s SSN because the IRS treats a single-member LLC the same as part of the owner for federal income tax purposes. However, if you use an EIN for payroll or other business obligations, you may list it instead. Using the correct number is important to avoid errors in tax reporting.

Should a disregarded entity have an EIN?

An EIN is necessary if your limited liability company hires employees or is subject to certain tax requirements, like excise taxes or the employment tax. Even if your single-member LLC doesn’t fall into these categories, some banks or clients may request an EIN for their records.

Which box do I check under federal tax classification?

If your limited liability company is disregarded, select "Individual/sole proprietor or single-member LLC." This classification matches how the IRS views your business for federal tax purposes and ensures the information aligns with your personal tax return.