So your past or current client wants a W-9
and you're sitting there like...
I totally remember having that same face when someone asked me for a W-9 when I was a Virtual Assistant and didn't have a clue.
What is a W-9?
A W-9 is a form from the IRS that let's people know what type of business you have (sole proprietor, LLC, S Corp, C Corp, etc) and other important info like your business name, address, and EIN (Employer Identification Number).
SPECIAL NOTE: If you don't have an EIN and are using your social security number instead, PLEASE get an EIN! It takes 5 minutes and is totally FREE! You can apply here.
Here's a look at a W-9. You can download one here.
Why do they need this information?
Have you ever heard of a 1099-MISC form?
It's the form a business has to file if they've paid a contractor to do services. It states how much the business paid the contractor to make sure that income gets taxed.
So if you are a sole proprietor or LLC and you were paid by cash, check, or ACH direct deposit, you will probably get a 1099-MISC.
Then why is there a place to check for corporations?
Most people don't want to remember what type of business you have!
So the W-9 becomes a blanket way for them to quickly figure out who needs a 1099-MISC form and who is in the clear.
If they're ever audited, they will have proof that all of their contractors were accounted for, and those that didn't get a 1099-MISC were in fact corporations.
Do I need to ask for a w-9 from someone?
Did you hire someone to provide you with services this year?
A coach, virtual assistant, ad manager, social media manager, designer, copywriter, etc - you need to ask all of these for a W-9 so you can know if you need to file a 1099-MISC form.
Need more info on 1099-MISC? We've got you covered with this post.
When do I need to ask for it?
The easiest way is to ask when you first hire someone. You can keep all of your W-9s in a cloud folder and refer back to them in January.
Most people will wait until December or even January to ask for W-9s.
Regardless of when you ask,
1099-Misc forms are due January 31, so you must have them before this!!
Too much to remember?
We can help take this off your plate!
Our accounting services start at just $49/mo based on revenue. Add 1099-MISC filing for just $2/mo for each contractor you want us to file for!