Sole proprietor, can I add my business name to my EIN?

[supersmallbiz]

I'm a sole proprietor with an EIN. Rarely, do I make enough from any one source that I get a 1099. When I do though, I have to give them my name before it will match with my EIN. Is it possible to add my business name to my EIN so that I can use that?

 

[quincy]

I'm a sole proprietor with an EIN. Rarely, do I make enough from any one source that I get a 1099. When I do though, I have to give them my name before it will match with my EIN. Is it possible to add my business name to my EIN so that I can use that?

What is the name of your state?

 

[FlyingRon]

EIN's can have tradenames/DBAs attached to them. You can write the IRS at the address you submit your taxes. See pub 1635

 

[LdiJ]

I'm a sole proprietor with an EIN. Rarely, do I make enough from any one source that I get a 1099. When I do though, I have to give them my name before it will match with my EIN. Is it possible to add my business name to my EIN so that I can use that?

So, when you obtained your EIN you did not link a business name with the EIN? I agree with flying ron, see publication 1635 or get a face to face appointment with the IRS at your local service center.

 

[Taxing Matters]

So, when you obtained your EIN you did not link a business name with the EIN? I agree with flying ron, see publication 1635 or get a face to face appointment with the IRS at your local service center.

I would change the last two words that I bolded above to say local office rather than service center. Traditionally the term "service center" with respect to the IRS refers to one of the large return processing and compliance centers, of which there are only a handful located across the U.S. And last I knew they didn't have any walk in services for the public. I mention this because the terms used will affect what results you get back on a Google or IRS web site search. The link that I provided takes you to an IRS page that allows you to find the nearest local office by putting in your zip code.

 

[mjpayne]

I'm a sole proprietor with an EIN. Rarely, do I make enough from any one source that I get a 1099. When I do though, I have to give them my name before it will match with my EIN. Is it possible to add my business name to my EIN so that I can use that?

Huh? You have to give them your business name before it will match? I would think giving them your EIN will be enough since you put your EIN on your Schedule C and they send the 1099 to the IRS and to you. The IRS will match up the 1099 total with the total on the Schedule C with your business EIN on it. I doubt they care too much about the name if the EIN matches.

 

[quincy]

Huh? You have to give them your business name before it will match? I would think giving them your EIN will be enough since you put your EIN on your Schedule C and they send the 1099 to the IRS and to you. The IRS will match up the 1099 total with the total on the Schedule C with your business EIN on it. I doubt they care too much about the name if the EIN matches.

He said he WANTED to add his business name. He was told how to do this.

His question was answered by an attorney and two other knowledgeable members.

 

[mjpayne]

He said he WANTED to add his business name.

And his question was answered by an attorney.

He asked if it's possible to add my business name to my EIN so that I can use that? I pointed out that the IRS can match it up with the EIN anyway. I doubt using his business name will break their system.

 

[quincy]

"Can I add my business name ..." was his question in his thread title and the answer to that question is "yes."

 

[Taxing Matters]

He asked if it's possible to add my business name to my EIN so that I can use that? I pointed out that the IRS can match it up with the EIN anyway. I doubt using his business name will break their system.

When his customers request his information for IRS reporting purposes, it will use a Form W-9 or similar form that the customer has created which asks for all the same information. Regardless of the format used, the rules here are the same: as the OP is operating as a sole proprietorship the OP must provide his name as the name of the taxpayer (not the business name) and either his SSN or, if he has one, the EIN. He may also provide the business (trade) name, too, if he wants; that's optional. What he cannot do is omit his name and put just the business name as the name of the taxpayer on it. Doing that will cause the IRS to reject the Form 1099 because the information will not match the information in the IRS entity database.

So if what he wants to do (and it's not exactly clear what he wants) is to use the name of the business as the taxpayer name and omit his name on the W-9 he will not be able to do that. Doing that would indeed, to use your phrase, "break their system."

He's a sole proprietor and thus he is the taxpayer; his individual name goes on line 1 of the Form W-9. He may put his business trade name (his DBA) on line 2 if he wants. And he may use either his SSN or his EIN for the taxpayer identification number (TIN) on line 3. So strictly speaking, he would not have to have the business name added to the IRS entity system for the EIN. But it may be useful to do that. The important information the customer needs is his name, address, and the TIN (either SSN or EIN).

The instructions on the Form W-9 spell out exactly what is required.

 

[PayrollHRGuy]

Does not Line 2 of the W-9 not allow for a business name that is different than the EIN matching name listed in line 1?

 

[quincy]

Here is a sample W-9:

https://www.irs.gov/pub/irs-pdf/fw9.pdf

 

[PayrollHRGuy]

I missed the last paragraph of TM's post when I posted.

 

[mjpayne]

When his customers request his information for IRS reporting purposes, it will use a Form W-9 or similar form that the customer has created which asks for all the same information. Regardless of the format used, the rules here are the same: as the OP is operating as a sole proprietorship the OP must provide his name as the name of the taxpayer (not the business name) and either his SSN or, if he has one, the EIN. He may also provide the business (trade) name, too, if he wants; that's optional. What he cannot do is omit his name and put just the business name as the name of the taxpayer on it. Doing that will cause the IRS to reject the Form 1099 because the information will not match the information in the IRS entity database.

So if what he wants to do (and it's not exactly clear what he wants) is to use the name of the business as the taxpayer name and omit his name on the W-9 he will not be able to do that. Doing that would indeed, to use your phrase, "break their system."

He's a sole proprietor and thus he is the taxpayer; his individual name goes on line 1 of the Form W-9. He may put his business trade name (his DBA) on line 2 if he wants. And he may use either his SSN or his EIN for the taxpayer identification number (TIN) on line 3. So strictly speaking, he would not have to have the business name added to the IRS entity system for the EIN. But it may be useful to do that. The important information the customer needs is his name, address, and the TIN (either SSN or EIN).

The instructions on the Form W-9 spell out exactly what is required.

As far as the automatic matching system is concerned, it really doesn't matter what the W-9 requests or says since the W-9 doesn't get filed with the IRS, the 1099-MISC does. The 1099-MISC has only one box for the recipient's name and one box for the TIN anyway and it's anybody's guess what the issuer will put there. Either way, a correctly prepared 1040 will have the payment recipient's name and SSN on the first page of the 1040 and the recipient's business name and EIN on the first page of the Schedule C so the IRS should in theory have all of that info anyway regardless of the combination the 1099-MISC preparer decides to use.

 

[quincy]

Taxing Matters is a tax attorney. You probably do not have to tell him how things work.