I have set up an single member LLC and I am trying to assign all my commissions to the LLC. IRS guidelines state that a single member LLC must use their personal social security number for W9 tax payer information. Some insurance company's refuse to assign commission to the LLC and use my social security number for the W9 tax payer. For those of you single member LLC's, what are you doing to make this process easier? I am missing something?
Questions on LLC
- Thread starter NWSINS
- Start date
- 9,744
Why would you need to assign commissions to a single member LLC? Are you considering electing to be taxed as an S corp?
- Thread starter
- #3
- 9,744
I understand. If there's no difference in taxation, then why?
One of my entities is a sole member LLC. I haven't had a single company (over 10) have an issue with direct deposit of commissions into my LLC's account.
- Thread starter
- #5
- 9,744
We must be using different insurance companies then.
- 1,473
I think you have it wrong. The 1099 must be in the name of the LLC and the commission in the name of the LLC that the reason your doing that. Not to your name. you must open an account in the LLC name and the check form the Insurance company will be paid in the LLC name. Not sure what is the confusion.
- 736
couldnt you just get set up regularly, then fill out an assign commission to corp/llc entity paperwork?
- Thread starter
- #9
Taken form IRS website:
Taxpayer Identification Number
For federal income tax purposes, a single-member LLC classified as a disregarded entity generally must use the owner's social security number (SSN) or EIN for all information returns and reporting related to income tax. For example, if a disregarded entity LLC that is owned by an individual is required to provide a Form W-9, Request for Taxpayer Identification Number and Certification, the W-9 should provide the owner’s SSN or EIN, not the LLC’s EIN.
A single-member LLC that is a disregarded entity that does not have employees and does not have an excise tax liability does not need an EIN. It should use the name and TIN of the single member owner for federal tax purposes.
However, if a single-member LLC, whose taxable income and loss will be reported by the single member owner, nevertheless needs an EIN to open a bank account or if state tax law requires the single-member LLC to have a federal EIN, then the LLC can apply for and obtain an EIN.
Taxpayer Identification Number
For federal income tax purposes, a single-member LLC classified as a disregarded entity generally must use the owner's social security number (SSN) or EIN for all information returns and reporting related to income tax. For example, if a disregarded entity LLC that is owned by an individual is required to provide a Form W-9, Request for Taxpayer Identification Number and Certification, the W-9 should provide the owner’s SSN or EIN, not the LLC’s EIN.
A single-member LLC that is a disregarded entity that does not have employees and does not have an excise tax liability does not need an EIN. It should use the name and TIN of the single member owner for federal tax purposes.
However, if a single-member LLC, whose taxable income and loss will be reported by the single member owner, nevertheless needs an EIN to open a bank account or if state tax law requires the single-member LLC to have a federal EIN, then the LLC can apply for and obtain an EIN.
- 2,177
The 1099 would not go to an individual; it would go to the company, same as the commissions. Your company would pay you.
What I did was get my new LLC licensed as an agency. Then have commissions assigned to the agency. Then by getting my wife licensed (she's a partner in the LLC), renewals would continue to pay at my death. Apparently this course is especially important with MA renewals. Too early yet to tell if that was good advice.
