September 16, 2016

LLC EIN vs Single member EIN (or TIN)

I just called the IRS regarding EINs for SMLLCs. I was under the assumption that all income for SMLLCs should be reported under the single members EIN (or TIN) and that if the actual LLC had an EIN (for banking purposes, etc.) that it should only be used for that purpose – not for using to report income.

The person I spoke with at the IRS told me that only one EIN was necessary and that at year end, the LLC would file a 1065 (which I thought was only a partnership return) for informational purposes and then a K1 would be issued to the single member that would be used to file the single members 1040 schedule C.

I am trying to figure out what EIN (or TIN) should be given to customers on a W9 but seem to be reading and hearing contradictory information.

Any ideas?

Thanks!

Answer

I have a single member LLC with its own EIN.

I receive 1099s under the LLC’s EIN from purchasers of my LLC’s services.

My 1040 is filed using my personal Social Security Number, and the revenue from my LLC is recorded on Schedule C (which has a place to reference your LLC’s EIN).

A single member LLC does not file a 1065, though I don’t think the IRS will mind if you do. I did the first year with my single member LLC, and they took my taxes 🙂 and then sent me a letter stating to use Schedule C in the future.

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