A W-9 form is used to ask for a taxpayer identification number (TIN) from a person, business, or other entity. If someone has asked you to complete a W-9 and you are an LLC (Limited Liability Company), you might be unsure of how to proceed. An explanation of how to complete a W-9 for an LLC is provided below.
First, give your name and address. You must include your name (or the name of your LLC) and address in the first section of the W-9 form. Use your name and address exactly as you did on your tax return.
Select Your Tax Classification in Step 2 You must select your tax categorization in the W-9’s second column. Options include: Limited Liability Company (LLC) categorized as a corporation or partnership
– Individual/Sole Proprietor or Single-Member LLC
– C Corporation
– S Corporation
– Partnership
– Trust/Estate
If your LLC has not chosen to be taxed as a corporation, you should select “Limited Liability Company (LLC) classified as a partnership.” You should select “C Corporation” or “S Corporation,” depending on which one relates to your LLC, if it has opted to be taxed as a corporation.
Step 3: Supply Your TIN You must provide your TIN in the third section of the W-9 form. Depending on how you are taxed, this is either your Social Security number (SSN) or your employer identification number (EIN). You may use your SSN if your LLC only has one member. Use your EIN if your LLC has several members.
What Sets the C Corporation and S Corporation Apart on the W9 Form? On a W9 form, the fundamental distinction between a C Corporation and a S Corporation is their tax status. While a S Corporation is a pass-through organization that is not taxed at the corporate level, a C Corporation is taxed as a separate entity from its owners. As a result, depending on which one applies to your LLC, you should select “C Corporation” or “S Corporation” on your W9 form if your LLC has chosen to be taxed as a corporation.
What Exactly Constitutes a Regarded Entity for Tax Purposes? An entity that is not recognized by state law but is treated as one for federal tax purposes is referred to as a regarded entity. This covers organizations like grantor trusts, qualified subchapter S subsidiaries, and disregarded businesses.
Is a person who holds a green card therefore regarded as a US citizen? A Green Card holder is, in fact, regarded as a US citizen for tax purposes. As a result, they are obligated to file tax returns with the IRS and are subject to US tax rules.
Correspondingly, 501(c)(3)s fall under what federal tax classification? A 501(c)(3) organization is a private foundation, public charity, or private running foundation that is tax-exempt. Since it only applies to tax-exempt organizations, this classification differs from the tax classification options on a W-9 form. If your LLC is a tax-exempt organization, you should speak with a tax expert to ascertain your firm’s proper tax classification.