Should I use my C-corp EIN under my tax info?

[heerasaeed]

Hi - I just moved to the US and now changing my country on Upwork. I run my own consulting company and it is is registered as a C-corp in the US. Should I use my company's EIN in tax info on my personal profile? or my personal SSN? What are the pros and cons of both? Please advise

My tax consultant doesnt have enough knowledge on how Upwork works.

[ArjayM]

Hi Hira,

Yes, If you are a U.S person, you need to file a Form W-9 with Upwork and you can use your Employer Identification Number(EIN) for your Tax Information to be identified as a business entity. You may read through this help article for more information and instructions in completing your Tax Information. Let us know if you need further assistance.

[patchworksvideo]

If you, individually, are a US person for tax purposes, you'd be using Form W-9 through Upwork. If for whatever reason you'd still be considered a foreign person, you'd be using one of the W-8 forms.  That's one question to make sure you work through.

If W-9 is the right choice, then this is Form W-9. Upwork collects this information through your Tax Information in your profile, but seeing W-9 itself should give you some context about what Upwork is asking for and why:

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

Under the "Specific Instructions" for Line 1 (Name as shown on your tax return) - when it's a C-Corporation, it asks for the entity name. Then, on Line 2, any business/trade name (such as a DBA or "assumed name"). The thing is that Upwork doesn't have Line 1 and Line 2, just the "Legal Name of Taxpayer" blank. I really think Upwork should change that and either add the exact lines that appear on Form W-9, or make it clear which line you're filling out.

As for EIN, yes - use the EIN of the corporation. Not your personal SSN, and not a EIN that you'd obtain for yourself as an individual. This is consistent with Form W-9 instructions (table on Page 3), and also with Upwork's help page on it.

If it had been a single-member LLC that's treated as a disregarded entity for tax purposes, then you actually would NOT use your company EIN there - you'd use either your SSN, or a personal EIN assigned to you. But again, that's another story, as this doesn't apply to you. As a C Corporation, IRS says use the entity's EIN on Form W-9.

Do note that you'll have to file a separate tax return for the Corporation before you file your personal tax return.

[0707094b]

Thank you, John - super helpful! I have a few clarifying questions on this very topic as well. Is there a way for us to connect individually? Many thanks in advance!

[ksparber]

Hi John,

I have a few questions for you about this very topic re: an owner EIN and SMLLC and the lack of 2 lines in Upwork's version of the W-9. I prefer to connect individually. Can you message me on Upwork or another way to do so?

Thank you.

Warm regards,

Karin

[patchworksvideo]

Sure thing - look out! Basically, I have some clarifying questions for Upwork as well. The way it was described to me in a support case some time ago, was that because my name was in the "contact info" section, I would use the entity name as my name under "Tax Information." This way, my company name would appear on invoices and forms.  I'm not entirely certain that's correct, and honestly, I haven't hit the 1099-K threshold on Upwork previously, so it hasn't really mattered.  But yes, I'll reach out!