After all, you are in business to make money, not just spend it! When you are a vendor, you should be ready to provide a W-9 on demand. This is where that Dropbox trick comes in handy. To complete a W-9, download a blank copy of the form from the IRS website. The form is updated periodically, so make sure you get the latest version from the IRS to stay compliant.
I once sent an old version of form W-9 to a client. I was requested to send an update with the latest version of the form. If you are concerned about giving out your social security number and personal contact information, you can register as a business to avoid sending out personal details.
Either option is equally acceptable, though a registered LLC or S-Corp looks a little more professional on a W-9 than a sole proprietorship. You can use the same form multiple times. Rather than sending off an original make copies, scan a digital version. This will help you send it digitally when requested. That is up to you. I am a serial entrepreneur with several businesses behind me.
One of which was a party and event planning business in Denver. For one event, we worked with a shuttle service to safely drive party guests to and from our big holiday bash. After a few interactions with the shuttle driver, I became concerned he was not doing everything on the up-and-up as far as taxes and regulations, but we were too far in to switch vendors.
He pushed back on the requirement, but eventually relented and gave us that all important form. This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Review our cookies information for more details. Get more great content in your Inbox. Optional cookies and other technologies. I Accept No, Thank You. Agree Disagree. This should be your full name. It should match the name on your individual tax return.
If you have a business name, trade name, DBA name or disregarded entity name, fill it in here. If you do not have a business, you can leave this line blank. This section defines how you, the independent contractor, is classified when it comes to federal taxes.
You will check the first box if you are filing as an individual, sole proprietor or single-member limited liability company LLC owned by an individual and disregarded for U. Taxes apply to single-member LLCs in the same way. You do not need to fill in this section as an individual. Only certain businesses or entities with any reason for exemption need to fill out these spaces. This should apply to most entities.
This is known as backup withholding. The latter only applies if you hold your accounts outside the United States. If you maintain your account in the U. Line 5 requires the address number, street, and apartment or suite number where your employer will mail your information returns. An independent contractor can be distinguished by the following characteristics:.
Those who fill out Form W-9 must also certify that they are exempt from backup withholding. Because the W-9 also requires a Social Security number or tax ID, it should be guarded carefully to protect from identity theft.
They should also have concerns if they receive a W-9 form from a company for whom they are supposed to be working as a regular employee; the company may be trying to defraud them of benefits they are entitled to by counting them as an independent contractor.
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