LLC and W-9 – not to be confused with fill out

There are several types of such companies and it is extremely important to differentiate them since lot of paperworks require to clarify the status. When you fill out a form or document from US IRS you need to know how each type is going to affect rules that apply to each particular case.

Differentiation

There are four cases:

  • C-type (C Agency – is a business that belongs to equity holders who bought company shares. It deals with form 8832 and 1120 for income and expenses return)
  • Disregarded Entity (Business with sole owner who chose to not to be treated as C- or S- type, that means that there is no division between company and owner’s activities)
  • Partnership (more than one member)
  • S-type (purpose is to elect special status, they are transparent department, has ownership restrictions with one class of stock);

Fill out rules

Section 3 allows you to choose whether you are acting as an agency or an agency with liability limit. If agency has its own tax entity, as all abovementioned (except for disregarded entity) have, provide full name and EIN. Check out appropriate field to make status clear.

Last but not least: extra info in editable W9 sample

If the LLC belongs to one sole member which is not an enterprise, the IRS specifies that you must provide person’s name on the ‘name’ line thus business name stands for LLC title. If company acts under other company, provide parent name. In sole owner scenario just check the you tax status.