The rule
The IRS matches the pair on a 1099: the name and the TIN together. A Social Security number is tied in IRS and SSA records to a person's name. An EIN is tied to the legal name the IRS assigned it to. So line 1 of the W-9 must be whichever of those the TIN box points at, and the business name, if different, goes on line 2. The W-9 instructions say it directly for sole proprietors: enter your individual name on line 1, your business or DBA name on line 2, and you may enter either your SSN or your EIN.
Line 1 = the name the IRS knows the TIN by. Line 2 = what you call the business. When people mismatch, it's almost always because line 2's name went on line 1.
The five cases
| Situation | Line 1 | TIN | Line 2 | Tax classification box |
|---|---|---|---|---|
| Individual, no business entity | Your name as on your Social Security card | SSN | Blank | Individual/sole proprietor |
| Sole proprietor operating under a DBA | Your name | SSN, or the EIN issued to you as a sole proprietor | DBA / business name | Individual/sole proprietor |
| Single-member LLC, no election (a "disregarded entity") | The owner's name (individual or parent company) | The owner's SSN or EIN, not the LLC's own EIN | LLC name | Individual/sole proprietor (if the owner is an individual) |
| Single-member LLC that elected S corp or C corp status | The LLC's legal name | The LLC's EIN | Blank or trade name | Limited liability company, with S or C |
| Multi-member LLC, partnership, corporation | The entity's legal name exactly as on its IRS EIN notice (CP 575 / Letter 147C) | The entity's EIN | Trade name, if any | The matching box |
The disregarded-entity row is the one that surprises people. A single-member LLC often has its own EIN (banks ask for one), and it feels natural to put the LLC name with the LLC EIN. But for federal income-tax purposes the IRS ignores the LLC and looks through to the owner, so the 1099 pair the IRS expects is the owner's name and the owner's TIN. The W-9 instructions are explicit that a disregarded entity should not enter the LLC's EIN; the LLC's EIN is for employment and excise tax only.
Why the IRS is strict about it
Information returns exist so the IRS can match income reported by payers to income reported by payees. If a 1099 says "Riverside Landscaping LLC" with Jane Smith's SSN, the IRS's automated match finds an SSN that belongs to "Smith" and a name that doesn't start with "Smit," and the return fails. It then goes on a CP2100 to the payer, who has to send Jane a B-Notice, and if Jane fixes it by sending the same wrong pair again, a Second B-Notice, and eventually backup withholding, all over a name that was never wrong in any meaningful sense. The TIN matching guide explains the four-character "name control" the IRS derives from line 1, which is why the first word matters most.
How to fix a mismatch caused by this
- Ask the payee one question: "Is the TIN you gave us your personal Social Security number, or an EIN issued to the business?"
- If it's an SSN, the fix is the name: line 1 becomes the individual's name, and the business name moves to line 2. Get a new signed W-9.
- If it's the LLC's EIN and the LLC is a single-member disregarded entity, the fix is either the TIN (use the owner's SSN or the owner's EIN with the owner's name) or, if the owner prefers, the LLC can file Form 8832 or 2553 to be taxed as a corporation, after which the LLC name and LLC EIN become the correct pair. That's the owner's decision, not the payer's.
- If it's the entity's EIN and the entity is a partnership or corporation, the fix is the exact legal name from the EIN notice. "Smith & Jones LLC" and "Smith and Jones, L.L.C." can produce different name controls.
- Run the corrected pair through TIN matching before you file. A code 0 means the loop is closed.
For the AP team: how to ask the question
Don't send a bare "your W-9 doesn't match" message; the payee will send the same form back. The email that works names the specific problem and offers the fix:
"The IRS couldn't match the name and TIN on your W-9. This usually happens when a business name is on line 1 with a personal Social Security number. If the TIN you gave us is your SSN, please send a new W-9 with your own name on line 1 and the business name on line 2. If it's an EIN, please send a copy of the IRS notice that assigned it (CP 575 or Letter 147C) so we can match the legal name exactly."
The W-9 email templates include this wording in the initial request so the problem is prevented rather than fixed.
Questions people ask
My single-member LLC has an EIN. Can I ever use it on a W-9?
Only if the LLC has elected to be taxed as a corporation (or has employees and the EIN is being used for a W-9 where the payer will report to the LLC as a corporation). For a disregarded LLC the IRS wants the owner's TIN. Many payees use the LLC's EIN for years without a problem because their payers never filed a 1099 or never matched; the first CP2100 is when it surfaces.
I'm a sole proprietor with an EIN. Do I use my SSN or the EIN?
Either, with your own name on line 1. Many sole proprietors prefer the EIN to avoid giving out their SSN, and that's fine; the EIN was issued to you personally as a sole proprietor and matches your name.
Does the payer have to accept a W-9 that looks wrong?
A signed W-9 satisfies the solicitation requirement regardless. But a payer that can see the pair will mismatch (business name plus SSN format) is entitled to ask for a corrected form, and should, because the mismatch will come back as a CP2100 and a B-Notice a year later.
What about a husband-and-wife LLC?
In a community-property state it can be treated as disregarded (owner's name and TIN); elsewhere it's a partnership (LLC name and EIN). The payee's tax adviser decides; the payer just needs the pair that matches.