How to Fill Out a W-9 for an LLC

The W-9 form is used to obtain the taxpayer identification number of an individual or business. An employer, for example, must file a W-9 form with the IRS so that the employer can receive tax forms that are related. Form W-9 is also used to provide information about the payee, which is the individual or business that is receiving income. Make sure to fill out the W-9 form for the LLC if you are the owner of the company and want to claim the company as an individual for tax purposes.

The W-9 is used to claim a tax exemption for the company. When filling out the W-9 form, it is important to note that the company name is spelled out on the form, including the abbreviation. The company should also include its Principal Place of Business Address. If you are wondering how to fill out a W-9 as an LLC you should definitely read these W-9 instructions for Limited Liability Companies.

W-9 Tax Classifications for LLC

In order to know how to fill out a W9 for an LLC you should find out the LLC’s tax classification first. Tax Classifications are the descriptions of the different types of entities paying tax. LLCs are classified in the following areas:

Single-Member LLC

Single-member LLC is an entity that can be set up for the sole purpose of earning income. A single-member LLC can be set up as a corporation, partnership, or sole proprietorship. The owner of the LLC is the only person who can receive any income from the LLC.

To fill out W-9 as a single-member LLC you should:

  1. On Line 1 use the LLC owner’s legal name as shown on a tax return
  2. On Line 3 of the W-9 check a Single-Member LLC or enter the LLC owner’s tax classification.
  3. In the TIN line provide LLC owner’s TIN

C = C Corporation Tax Classification 

In the United States, a C corporation is a corporation (usually public) that has been registered with the state as a separate legal entity. It is the most popular legal form for larger corporations.

To fill out Form W-9 as a C=C Corporation LLC, you will need to provide the following information:

  1. The legal name of the LLC from the tax return.
  2. LLC Tax Classification: C (Corporation) on Line 3.
  3. LLC’s Employer Identification Number as a TIN.

S = S Corporation Tax Classification 

The S corporation tax classification is an income tax classification for a corporation or other entity that has made an election under subchapter S of the Internal Revenue Code. The entity’s taxes are passed on to the shareholders, and not the entity, in the form of dividends. The entity is not a separate taxpaying entity and is not subject to tax on its income or capital gains.

LLC-S corporation tax classification is when a company is classified as a Subchapter S corporation. The number of shareholders in the company must be less than 100 and the number of shareholders who are not US citizens must be less than 50%. To fill out Form W-9 as an S Corporation LLC, you will need to provide the following information:

  1. On the Line 1 use the legal name of the LLC shawn on the LLC’s tax return.
  2. Write the letter S next to the LLC tax classification on the Line 3.
  3. Use LLC’s Employer Identification Number as a TIN.

P = Partnership

A partnership is an LLC that is owned by two or more people. A partnership is a pass-through entity, meaning that income, deductions, gains, and losses are not taxed at the partnership level. Each partner reports their share of the business income on their individual income tax return. If you are filling out W-9 as for LLC that’s P tax classification you should:

  1. On the Line 1 enter the legal name of your LLC that is shawn on your tax return.
  2. On the W-9 Line 3 write the letter P next to LLC tax classification.
  3. On the TIN field enter your LLC’s EIN.

Disregarded entity

On IRS form W-9, a disregarded entity is an entity that is disregarded as separate from its owner for purposes of filing, paying, and reporting income, etc. Most commonly, a disregarded entity is a single-member LLC. In case if the owner of LLC is disregarded entity W-9 form should be filled out as single-member LLC.

Conclusion

For a limited liability company, there are three different types of tax classification one can have: partnership, S corporation, and C corporation. An LLC can be taxed as a partnership, but it is important to know which classification to put down on the W-9. An S corporation is not taxed at the company level, but at the individual level. C corporation is taxed the same as a regular corporation.

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