Everything you should know about Form W-9
What is a Form W-9?
When you receive Form W-9, it is normal to feel bewildered and wonder why you received it. Will it be a fine? Or is it a document that the IRS sends us directly? In reality, the Form W-9 is a document that is generally sent to us by the companies we provide services to. Its main purpose is to collect our information so that the company can issue the necessary documents for our taxes at the end of the year.
Why do we receive Form W-9?
Companies typically send Form W-9 to service providers as part of their documentation process. This form is crucial for the company to correctly issue tax forms, such as the 1099 NEC or 1099 Miscellaneous. Within the cleaning industry, among others, these are the most common forms we will encounter regularly.
Important Considerations Before Filling Out Form W-9
Before filling out Form W-9, it is essential to be clear about the legal structure of our company. The most common legal structures include:
Sole Proprietorship
Single Member LLC
Multi Member LLC
Corporation
The information we provide on Form W-9 will depend on our legal structure, so it is essential to know it well before completing the form.
Who Should Receive Form W-9?
If you are a company sending Form W-9 to one of your independent contractors, remember: Form W-9 is not given to employees. This form is only for third-party vendors or independent contractors, not for personnel who work directly for the company as employees.
Final Advice
If you have doubts about how to fill the W-9 form, my advice is to communicate with an adequate professional who can guide you in the process. Although it may seem a complicated document, the reality is that its purpose is simple: to provide the necessary information so that the company can issue the correct tax forms, such as 1099. Everything you should know about the W-9 form
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