Spousal owned single member LLC for consulting. Only employee is other spouse working as a 1099

Forum|Forum|2 years ago
February 4, 2024
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My wife started an LLC since she consults for several companies. I retired from full employment and will work as a consultant to my former employer as a 1099. We have discussed having me as the only employee of my wife's LLC and my former company is a client of the LLC. What information do I provide my former employer on a W-9? Do I list the LLC's EIN, my SSN? Can't find a clear answer. Ultimately, we want the LLC to be the supplier of services to my former employer. I just happen to be the "staff" assigned to their account.

The LLC will then pay me a "salary" and issue a W-2.

How is this best done?

Thanks for your help.

Not A Product Question

Best answer by MinhT1

I just found this on the IRS website:

For federal income tax purposes, a single-member LLC classified as a disregarded entity generally must use the owner's social security number (SSN) or employer identification number (EIN) for all information returns and reporting related to income tax. For example, if a disregarded entity LLC that is owned by an individual is required to provide a Form W-9, Request for Taxpayer Identification Number (TIN) and Certification, the W-9 should provide the owner’s SSN or EIN, not the LLC’s EIN.

This implies I should use my spouse's SSN on the W-9 not the LLC's EIN since she is the owner of the LLC.

You are correct.

I've edited my answers.

MinhT1

As your wife's LLC is a disregarded entity for tax purposes, the W-9 should be filled out with the name and SSN of its owner.

[Edited 02/04/24 | 9:44 AM PST]

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Unwired17Author

Thanks for the response. I had read somewhere that I should only use the EIN if the LLC was going to be taxed as a Corporation. I am assuming we will still treat the LLC from a tax standpoint as a "disregarded entity" and fill put a Schedule C. Was I wrong in that interpretation?

Thanks so much.

MinhT1

The single-member LLC is a disregarded entity and is reported on Schedule C of your wife's tax return. You can use the LLC's EIN for employment and excise tax returns, but should use the owner's name and SSN on form W-9.

[Edited 02/04/24 | 9:47 AM PST]

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