I have a full understanding of how a disregarded entity account needs to be set up and how the W-9 needs to be completed (with the owner's name on line 1 of the W-9 and the owner's TIN being used).
However, I'm at a loss as to how to explain to my colleagues how a disegarded entity could conceivably have its own EIN but that it should not be used on the W-9. I know that it has something to do with whether or not the disregarded entity has employees, but that's it. Can someone please expand on this for me?
Opinions expressed are my own.