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Independent Contractor: Need personal EIN for W9s In addition to LLCs EIN???

Forum|Forum|5 years ago
May 8, 2020
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I have a question about setting up a personal EIN.

I am an independent contractor (consultant) and I set up a single member LLC for my business.

I acquired an EIN for the LLC to open a bank account and just in case I need to hire employees in the future.

I want to apply for an EIN for myself, so that I do not have to use my SSN on W9s. I understand that I am supposed to use my SSN on W9s because my LLC is classified as a disregarded entity but don’t want to for security reasons.

On the SS-4 application for an EIN. I assume that I should put my name on line 1 and my business name on line 2. Is this correct?

More importantly, online 9A (type of entity) what should I choose since this is and EIN for me and not the LLC. Should I choose “sole proprietor” or other. And if “Other” what should I specify .

Thanks in advance for all your help

Best answer by AnnetteB6

If you are worried about providing your Social Security number to companies that will be paying you for your work as an independent contractor, the appropriate number to give them on the W-9 is the EIN for your business. They will be paying the business for the work, not you as an individual.

The LLC is a disregarded entity for tax purposes, meaning that it will not have to file a separate tax return. Instead it will be reported within your personal tax return on Schedule C.

You do not need a second EIN for yourself personally. You already have it with the EIN for the LLC.

@PJD3

A

AnnetteB6Answer

If you are worried about providing your Social Security number to companies that will be paying you for your work as an independent contractor, the appropriate number to give them on the W-9 is the EIN for your business. They will be paying the business for the work, not you as an individual.

The LLC is a disregarded entity for tax purposes, meaning that it will not have to file a separate tax return. Instead it will be reported within your personal tax return on Schedule C.

You do not need a second EIN for yourself personally. You already have it with the EIN for the LLC.

@PJD3

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P

PJD3Author

Thank you for getting back to me.

It was my understanding that if I use the LLC’s EIN it could create an ID mismatch and subject one to backup withholding. Is this the case??

A

AnnetteB6

The mismatch would occur if you submitted your name and the LLC EIN instead of the LLC name and the LLC EIN. As long as you submit the name of the LLC along with the EIN of the LLC, there would be no mismatch.

The businesses requesting that you submit the W-9 are paying the LLC, not you personally.

@PJD3

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Carl11_2

Employee

There's no such thing as a "personal" EIN. When issuing any tax related documents such as W-2's, 1099-MISC's or anything else, you should *ALWAYS* use the business EIN.

I'm self-employed myself, and under no circumstances will I ever give out my SSN. They get my business EIN or nothing. There are no exceptions.