Because an LLC is not recognized by the IRS as a separate business entity for taxation purposes, these companies can elect to be taxed as either a sole proprietorship (disregarded entity), partnership, or corporation. If you receive a 1099 for LLC income, you will probably need to fill out a W-9 form for the payer.
What is a W9 for an LLC?
The LLC tax classification W9 refers to the IRS form used by LLCs when working with independent contractors and vendors. The completed W-9 form will include the taxpayer ID number, business address, legal business name, and the tax classification of the company.
How does a single-member LLC complete a W 9?
File an LLC W9 Form Write “C” or “S” on the line next to the limited liability box. “C” denotes a corporation election; “S” denotes an S corporation election. Fill your business address on the lines provided. Write your taxpayer ID number on the appropriate lines.
Why do I need to fill out a W9 for a LLC?
Filling out a W-9 for LLC is a critical part of filing your limited liability company’s taxes correctly. This form is used to report mortgage interest income, non-employee income, and debt cancellation to the IRS. Although this form is fairly simple, completing it for an LLC can be challenging.
Where do you Put your business name on a W9 form?
On the first two lines of the form, enter your full name and the legal name of your LLC. This must match the business name you entered on your state LLC formation documents when you created the LLC.
Do you have to file a W-9 if you are an employee?
The business you work for must classify you as an independent contractor or an employee. If you’re an independent contractor, the company should request a Form W-9 from you. If you are an employee, they should ask you to complete Form W-4 so they can withhold payroll taxes. Under a W-9, the company will not withhold any taxes for you.
Can a LLC be taxed as a S corporation?
An LLC that elected a corporate tax classification can also elect to be taxed as an S corporation. When you provide your vendors and independent contracts with Form W-9, IRS rules require them to complete the form and return it to you.
