Completing Form W-9 as a Sole Proprietor (Including Single-Member LLCs)
Completing Form W-9 as a Sole Proprietor (Including Single-Member LLCs)
For the IRS, a sole proprietor or a Single-Member LLC (SMLLC) is the same as the individual owner. Use these steps to ensure your W-9 matches IRS records and avoid backup withholding.
Does this apply to me?
You should follow the instructions per the IRS guide if:
- You are an individual operating a business on your own (Sole Proprietor).
- You are a Single-Member LLC (SMLLC) that has not filed Form 8832 or Form 2553 with the IRS to be taxed as a corporation.
If you are a Single-Member LLC but have not filed these specific forms, the IRS considers you a "disregarded entity" for tax purposes. You do not fall into the "Corporation" or "Partnership" categories; you must use the Sole Proprietor instructions above.
If you do not know what entity type or if any forms have been previously filed, consult the IRS or a qualified tax advisor for guidance and assistance with completing the W-9 process.
Form Checklist
Line 1 (Name): Enter the owner’s first and last name (exactly as it appears on the tax return). Do not use the business or DBA name.
Line 2 (Business Name): Enter the DBA, trade name, or LLC name here, if applicable.
Line 3a (Tax Classification): Check "Individual/sole proprietor or single-member LLC."
TIN: Use the business owner’s SSN or an EIN issued to the owner personally—never a TIN tied only to the business name.
Why are Single Member LLCs treated this way?
An LLC is a state-law construct, not an IRS tax category. Unless you have filed for corporate tax treatment (Form 8832 or 2553), the IRS views you as a "disregarded entity." This means your business is taxed exactly like a sole proprietorship, using your personal name and TIN.
The Risk of Incorrect Filings
If a business name is entered on Line 1, the name/TIN combination will not match IRS records. This triggers a "B-Notice" (CP2100) from the IRS, forcing the payer to potentially withhold 24% of any payment (backup withholding) until the issue is resolved. Catching this error at intake is essential to avoiding penalties and excessive withholding.
Where can I go for more information?
This FAQ is intended to be an informational overview and not a comprehensive guide for the applicability or use of the W-9 form. Please consult the IRS ( Official Instructions) or your tax advisor for more information and any best practices.