Importance of W-9 Form for Self-Employed Workers
The W-9 form must be filled out by self-employed workers to allow businesses to keep track of their external workforce. As a contractor, you may fill out multiple W-9 forms.
The contractor fills out the W-9 form and the business later reports the contractor’s yearly earnings on the 1099 form.
Filling out a W-9 for an LLC
Filling out a W-9 for an LLC reports income and debt cancellation information correctly to the IRS. Doing this prevents tax issues from affecting your business. On the form, enter your LLC’s full legal name matching your formation documents. Check the LLC’s tax classification box.
Provide taxpayer ID number (TIN), business address, legal name, and tax classification when filling out a W9 for an LLC.
The W-9 form requires LLCs to give basic information like name, address, and ID number. Accurate information avoids issues and penalties. Keep records of submitted W-9 forms for audits.
An LLC partnership filling out a W9 provides its TIN or EIN. If its name or TIN changed since prior W9, give updated info to report income accurately to the IRS and avoid confusion.
Requirement of W-9 Form for Businesses
Is W9 form mandatory?
The W-9 form is filled out by self-employed workers. As a contractor, you may fill out multiple W-9 forms. The contractor fills out the W-9 form.
Can you do business without a W9?
Filling out a W-9 for an LLC reports income and debt cancellation information correctly to the IRS. This prevents tax issues from affecting your business. On the form, enter your LLC’s information matching your formation documents.
You fill this as a self-employed person when a client bills you over $600. Other business structures also complete this form.
An LLC partnership fills out a W9 by providing its identification number. If updated information is needed, it gives that to report income accurately to the IRS to avoid confusion.