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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2825
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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If i filed as an llc, should I elect to be an S corp? a

Customer Question

If i filed as an llc, should I elect to be an S corp? a customer is asking for W9 and I don't want to put my ss# ***** there. Also, when do i need to elect to be an S corp? Thanks
Submitted: 3 months ago.
Category: Tax
Expert:  Barbara replied 3 months ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

You do not have to elect S corporation status to obtain an EIN. You can obtain an EIN for your sole member LLC on the IRS website.

https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

You can elect S corporation status whenever you choose, OR you can remain a sole member LLC.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Customer: replied 3 months ago.
Hi Barbara,I think you misunderstood the question. I already have an EIN.
On the W9 - if it is a disregarded entity, I need to put my SS#. If I elect as an S corp, I can put the EIN number. I don't want to put my ss#, but not sure if this is ok to elect as an S corp. thanks
Expert:  Barbara replied 3 months ago.

I understood your question.

If you already have an EIN, you will check the box on Line 3 for Individual/sole proprietor or single member LLC. Then fill in your EIN number NOT your social security number.

See the instructions for W-9 on Page 3.

https://www.irs.gov/pub/irs-pdf/fw9.pdf

Customer: replied 3 months ago.
Part I. Taxpayer Identification Number (TIN)
Enter your TIN in the appropriate box. If you are a resident alien and you do not
have and are not eligible to get an SSN, your TIN is your IRS individual taxpayer
identification number (ITIN). Enter it in the social security number box. If you do not
have an ITIN, see How to get a TIN below.
If you are a sole proprietor and you have an EIN, you may enter either your SSN
or EIN. However, the IRS prefers that you use your SSN.
If you are a single-member LLC that is disregarded as an entity separate from its
owner (see Limited Liability Company (LLC) on this page), enter the owner’s SSN
(or EIN, if the owner has one). Do not enter the disregarded entity’s EIN. If the LLC
is classified as a corporation or partnership, enter the entity’s EIN.So, do i need to enter the ein of the llc? It states above, not to enter the disregarded entity's ein.
Expert:  Barbara replied 3 months ago.

Correct.

If you are a single-member LLC that is disregarded as an entity separate from its
owner (see Limited Liability Company (LLC) on this page), enter the owner’s SSN
(or EIN, if the owner has one).

Expert:  Barbara replied 3 months ago.

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 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 and Certification, the W-9 should provide the owner’s SSN or EIN, not the LLC’s EIN.

However, for certain Employment Tax and Excise Tax requirements discussed below, the EIN of the LLC must be used instead. Therefore, an LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below. Thus, most new single-member LLCs classified as disregarded entities will need to obtain an EIN. An LLC applies for an EIN by filingForm SS-4, Application for Employer Identification Number. See Form SS-4 for information on applying for an EIN.

A single-member LLC that is a disregarded entity that does not have employees and does not have an excise tax liability does not need an EIN. It should use the name and TIN of the single member owner for federal tax purposes. However, if a single-member LLC, whose taxable income and loss will be reported by the single member owner, nevertheless needs an EIN to open a bank account or if state tax law requires the single-member LLC to have a federal EIN, then the LLC can apply for and obtain an EIN.

https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-companies

Expert:  Barbara replied 3 months ago.

Just following up with you to see if you have any other questions or concerns. If so, please come back to me here, and I will be happy to assist you further.

Best regards,

Barb