A W-9 form serves a single purpose — it allows you to send a TIN or SSN to another person, besides the IRS. In this article, we will take a closer look at what a W-9 form means, what it is used for, and how to complete a fillable W-9 form.
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What Is a W-9 Form?
Form W-9, also known as Request for Taxpayer Identification Number and Certification, is used when a taxpayer has to report certain types of income for a tax year. It is most often applied by freelancers or independent contractors rather than employees.
The form helps check the correctness of the taxpayer identification number (TIN). It also proves that you, as a contractor or freelancer, are responsible for withholding taxes from your income. At the end of the tax year, your company will use the data from Form W-9 to fill in a 1099-MISC form.
Who Is Required to Fill Out a W-9 Form?
You need Form W-9 if you work with a company that requires information to be filed for the IRS to pay taxes. For example, when you receive payments for services you provide as an independent contractor, pay interest on a mortgage, or receive dividends.
Here is a list of the common Form W-9 applicants:
- freelancers use W-9 forms to meet their tax obligations as self-employed individuals;
- professional consultants provide business consulting services on specific interests and areas of the company management, such as marketing, sales, finance, and more. They also pay taxes using W-9 forms;
- trade workers like landscapers, plumbers, or electricians also rely on Forms W-9 to pay taxes, depending on the type of their service structure from a tax standpoint;
- single-member limited liability companies or LLCs require Form W-9 if they manage documents as individuals, not as legal corporations.
How to Fill Out a W-9 Form?
You might think that filling out a W-9 form for an independent contractor is not an easy task. The good news is that it won’t take you long to enter the data in the form. If your question is ‘How to complete a W-9 tax form?’, you need to follow these simple steps:
Step 1. Enter your personal information at the top of the form. Specify your full name and make sure it is correct.
Step 2. Next, you need to enter the name of the company. Specify it in the special line or leave the field empty if you aren’t a business owner.
Step 3. Below, you will see a field in which you need to enter the tax classification. Most often, you can list yourself as a single-member LLC, self-employed, or an individual. With the help of the IRS, you can also register as an S corporation, a C corporation, and a property business.
Step 4. Add the information about your place of residence. As required by the IRS, the applicant must provide an address, including street name, zip code, and apartment number.
Step 5. In the next field, write your TIN or a Social Security Number.
Step 6. After you fill out the form, you need to add your signature. It will confirm that you have read and agreed to all the items on the form.
Be sure to check all the information you provide on the form to make sure it’s entered correctly.
How Do You Fill out a W-9 Form for an LLC?
When it comes to an LLC, you must provide a W-9 form to report information if your business or other gig receives more than $600 in income during a tax year.
Let’s take a look at the list of steps to fill out Form W-9 for an LLC:
- First, enter your full name.
- Next, indicate if you are a single member or an LLC owner.
- Enter detailed information about the full address of your business.
- Read the certification section carefully and sign the form to mark you have read the terms and conditions.
- Finally, submit your filled W-9 form to the payor. It’s important not to submit it to the IRS. The payor will use the data on your form to complete their taxes.
Dealing with tax documentation never sounds like something simple, especially when doing it for the first time. However, with the information below, this process should be less tedious. We hope you have found this guide helpful and managed to sort out any questions about filling out the form.
