NPI Numbers > NPI Numbers
Single Member LLC Tax ID
tinapiro:
I know this is a month old, but I thought maybe I could clarify this a little bit. My background is accounting so I thought I might be able to shed the light on this a little more. When filling out a W-9 for a corporation, partnership, or sole proprietorship it's very basic - you have an EIN for a corporation or partnership and you use a SSN for a sole proprietorship. When an LLC is formed, you still have the option to form under any of these categories. If they form under a corporation or partnership, you use an EIN. If the LLC is formed under an individual (sole proprietorship), it's considered a disregarded entity and the individual should use their SSN. The issue with the LLC and the W-9 is that you may not always know if they are a sole proprietorship or not. They may not have their individual name listed in the name box, and they don't always mark the tax classification (C, P, or D). I always make sure they have the tax classification box marked - it's the only way you know for sure whether the company is formed under an individual.
I hope that helped a little bit.
PMRNC:
--- Quote ---If the LLC is formed under an individual (sole proprietorship), it's considered a disregarded entity and the individual should use their SSN.
--- End quote ---
I've been an LLC (sole proprietor) and I've always used my EIN ???
dekenn:
When we set up my husband's practice, (sole proprietor), we did NOT form an LLC, but were told by our accountant that we needed an EIN for the business so we could pay the employees, and get paid by the insurance companies. We always have filled out the EIN on the W-9's. Because of past business with Medicare, he was already enrolled in Medicare under his SSN.... which, is now causing complications with the electronic billing and crossovers. When I called Medicare, they told me to fill out the enrollment forms 855I with his EIN number!! ?? I don't think anybody really knows what the correct way is, as long as it's consistent I guess... (reporting income and paying taxes!!!) ??? ??? ???
tinapiro:
Since LLC's are created through state laws (and not federal laws), they aren't recognized by the federal government as a separate tax classification. The federal government only recognizes whether a company is a corporation, partnership or sole proprietorship. A single member LLC who is being treated as a disregarded entity (did not fill out the 8832 to be treated as a corporation) and who does not or will not have employees, should report under the single owner's name and SSN. If (or when) a single member LLC hires employees, they must use the LLC's EIN - you can't report payroll taxes under an individual's SSN.
As far as your husband's practice, if he has employees he should be reporting everything under the business EIN.
Linda - do you have employees? If so, your good to go because you should be using your EIN.
dekenn:
That makes sense..... now the daunting task of getting Medicare switched over to his EIN... should be interesting. Unfortunately, I know the deadline for PECOS is next year, so I keep putting it off.. ::)
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