How to fill out w9 for llc s corp

If you own an LLC and are filling out IRS Form W-9 for the first time, you might get stuck on this section near the beginning of the form:

IRS Form W-9 states “Check appropriate box for federal tax classification” and the options include: Individual/sole proprietor, C Corporation, S Corporation, Partnership, Trust/estate, Limited liability company, and Other.

If a business is an LLC, here is how to answer the section of W9 above:

1. If an LLC has elected to be taxed as an S corporation (by filing IRS Form 2553), the LLC’s tax status is “S corporation,” so check “Limited Liability Company” and write S in the blank to the right.
2. If an LLC has elected to be taxed as a C corporation (by filing IRS Form 8832), the LLC’s tax status is “C corporation,” so check “Limited Liability Company” and write C in the blank to the right.

If the LLC has not filed forms to elect to be taxed as either an S Corporation or C Corporation, these default rules apply:

1. If an LLC has one owner, the LLC’s default tax status is a disregarded entity. A disregarded entity is any business that is considered separate from its owner for legal purposes but not for taxation. If a single-member LLC does not affirmatively elect to be taxed as a corporation, it will be taxed as though the business is a sole proprietorship.

To complete this portion of the W9, fill in your personal name in the Name block, your company’s name in the Business name block, your company’s address in the address block, and check the box labeled: “Individual/sole proprietor.”

1. If an LLC has two owners, the LLC’s default tax status is “partnership.” So check LLC, and enter P for Partnership.

If your LLC is owned by a business (such as another LLC), these guides do not apply. If your LLC is owned by a business, please note that you should see the instructions for this form or consult with a tax professional such as a CPA or tax attorney.

Jeff Franco's professional writing career began in 2010. With expertise in federal taxation, law and accounting, he has published articles in various online publications. Franco holds a Master of Business Administration in accounting and a Master of Science in taxation from Fordham University. He also holds a Juris Doctor from Brooklyn Law School.

Limited liability companies are common; however, the Internal Revenue Service does not recognize the business entity for federal tax purposes. Instead, the owner of the LLC may choose to classify the business as a recognizable business entity. The classification may make a difference with regard to how the IRS assesses taxes on company profits. For freelancers and self-employed individuals, the classification may factor in to how to properly complete form W-9.

Choose an LLC Classification

First of all, determine how you want to classify your LLC. Single-member LLCs may choose to become a “disregarded entity,” in which case the IRS treats the business as a sole proprietorship for federal tax purposes, or a corporation. If you want to be taxed as a corporation, on the other hand, you may also elect to be taxed as an S corporation if you meet certain specific guidelines, reports Business News Daily. You must file form 2553 to make an S corporation election. S corporations may offer certain tax benefits.

To make a classification election, complete and file IRS form 8832. Of particular concern is section 6 – choose either box “a,” to elect to be taxed as a corporation, or box “c,” to elect to be taxed as a disregarded entity.

Obtain an Employer Identification Number

Next, review your business formation documents, licenses and permits. Look to see if you applied for and received an Employer Identification Number (EIN). Form W-9 asks for an EIN number if you have it. Several businesses need an EIN. Particularly, you need an EIN if you have employees, operate your business as a corporation or file tax returns for employment, excise, alcohol, tobacco or firearms.

You can apply for an EIN over the Internet, by calling 1-800-829-4933 or filing form SS-4.

File an LLC W9 Form

Obtain a blank copy of the W9 tax form, which you can download from the IRS website. Fill in your name and your business name on the first two lines. Only select the “Limited Liability Company” box beneath the business name line if you elected to be taxed as a corporation. Write “C” or “S” on the line next to the limited liability box. “C” denotes a corporation election; “S” denotes an S corporation election. Fill your business address on the lines provided.

Write your taxpayer ID number on the appropriate lines. If you have an EIN, write your EIN in the boxes designated for Employer Identification Numbers. If you chose to be taxed as a disregarded entity, provide your Social Security Number in the boxes provided for Social Security Numbers.

Sign the form and date it. Submit the form to the person who requested it; do not send it to the IRS.