When you invest using your IRA LLC, the party you are investing with will often ask you to complete IRS Form W-9, Request for Taxpayer Identification Number and Certification. In some cases, the same information is requested within a separate document such as a partnership subscription agreement or investor questionnaire.

The W-9 tells the income issuer how to report payments to your plan. Because the IRA is a tax-exempt entity, it is important to complete the form correctly so that income is identified as belonging to the IRA, not to you personally.

How the IRA LLC is treated for tax purposes

The LLC is a single-member entity owned by your IRA. For tax purposes, the LLC is disregarded. The IRA is the taxpayer and receives the tax liability of the LLC. This distinction drives how every field on the W-9 is completed.

Does your IRA need its own EIN?

By default, your IRA does not have a separate EIN. The IRS only requires an IRA to obtain its own EIN if the plan will be filing a tax return, such as Form 990-T for UBTI or UDFI.

If you do not expect to generate reportable UBTI or UDFI, no IRA EIN is needed. You will identify the IRA using your Social Security Number along with the description "John Smith IRA" (using your own name). The IRS recognizes the IRA designation and understands that income belongs to the tax-exempt IRA, not to you personally.

If you do expect to generate reportable UBTI or UDFI, you should obtain a separate EIN for your IRA before completing the W-9. This is a straightforward process that you or your CPA can handle directly with the IRS. Contact your CPA for assistance if you are unsure whether your investments will trigger a filing requirement.

Field-by-field instructions

Line 1 — Name
Enter the name of your IRA. Use the exact name shown on your EIN confirmation letter from the IRS. This is typically formatted as: [Your Name] IRA.

Line 2 — Business name / Disregarded entity name
Enter the full name of the LLC.

Line 3 — Federal tax classification
Check the box for "Other" and write in "IRA."

Part I — Taxpayer Identification Number
This depends on whether your IRA has its own EIN.

If your IRA does not have a separate EIN, enter your Social Security Number (SSN) in the Social Security Number field.

If your IRA has been issued its own EIN, enter that EIN in the Employer Identification Number field.

Important: Do not enter the LLC's EIN on Form W-9. The LLC is a disregarded entity. The taxpayer is the IRA.

Part II — Certification
Sign and date as you normally would.

Sample completed form

Sample IRS form W-9 as it should be completed for an IRA linked to an IRA Trust plan.

Frequently Asked Questions

Why don't I use the LLC EIN?
The LLC is a disregarded entity for tax purposes. It is not the taxpayer. The IRA is. Using the LLC EIN would misidentify the taxpayer and cause income to be reported to the LLC rather than to the tax-exempt IRA. Always use the IRA's taxpayer identification number, whether that is your SSN or a separate IRA EIN.

What if a subscription agreement asks similar questions but is not a W-9?
Many investment sponsors use their own investor questionnaires or subscription agreements in place of a standard W-9. The IRS recognizes these "W-9 equivalent" documents as acceptable for taxpayer identification purposes. Answer the fields the same way you would a W-9: the IRA is the taxpayer, the LLC is the disregarded entity, and the TIN is either your SSN or the IRA EIN. The underlying logic is the same regardless of the form used.

Related Articles

• How do I use the LLC EIN?
• How do I fill out IRS Form W-9 for an IRA Trust?

Disclosure

This information is provided for educational purposes only and should not be interpreted as tax, legal, or investment advice. Readers are encouraged to consult a qualified professional who can offer guidance based on their personal situation.