You might have to complete a W9 form as a single-member LLC when dealing with customers or suppliers. Your Social Security number or employer identification number (EIN), which is used as your tax identification number, can be requested using this form. What you need to know about completing a W9 as a single-member LLC is listed below.
On the form, you must first enter both your legal name and business name. You can also provide your DBA (doing business as) name if you have one. Your tax identification number, which can be either your Social Security number or your EIN, must also be provided. You can apply for an EIN on the IRS website if you don’t already have one.
You must next complete the area for your chosen business entity type. You’ll probably pick the “Limited Liability Company” option as a one-member LLC and then state that you are a “disregarded entity.” As a result, your LLC is viewed as a sole proprietorship for tax purposes, and all earnings and expenses are reported on your personal tax return.
As a single-member LLC, you are allowed to write off any business-related expenses that are typical and essential. This covers expenses for items like office supplies, marketing and promotion, travel, and fees for professionals. Personal expenses, however, that are unrelated to your business, are not deductible.
If you use a DBA, you might be unsure whether you require a different bank account. Having a separate account is a smart idea to keep your personal and professional finances apart, even though it is not legally necessary. This will benefit you throughout tax season and make it simpler to keep track of your income and expenses.
And last, if you own many firms, you might be wondering how many EINs you need. The usual norm is that each legal entity only needs one EIN. Therefore, you would require a different EIN for each of your single-member LLCs if you had more than one. However, you would only need one EIN if you had more than one DBA under the same LLC.
In conclusion, completing a W9 as a single-member LLC is not too difficult. Just be sure to state that you are a disregarded entity, provide your legal name, business name, tax identification number, and maintain proper records of your earnings and outgoings. Also keep in mind that while many corporate expenses are tax deductible, personal spending are not.