Technically, a client is required to have a contractor fill out a Form W-9 before they pay them. Not all clients follow the rules, though. It’s not out of the question for a contractor to receive a W-9 near the end of the tax year, as their client scrambles to get their taxes done on time.
How do I fill out a W-9 for an independent contractor?
How to Fill out a W-9?
- Print your name or business name in the space where it says “Name.”
- Check the box for “Individual/Sole proprietor” if you have not filed your taxes as a corporation, partnership or LLC.
- Check the box for “Exempt payee” only if you are positive that you are exempt from backup withholding.
Do consultants need a W9?
The W9 is a form that the company should have on file for anyone that did any sort of work for the company, but was not an employee of that company. This would include freelancers, consultants, contractors, and vendors. If you have contractors you have them fill out the W9 before they start work.
How do I fill out a W 9 for my business?
W-9 Form Instructions
- Line 1 – Name.
- Line 2 – Business name.
- Line 3 – Federal tax classification.
- Line 4 – Exemptions.
- Lines 5 & 6 – Address, city, state, and ZIP code.
- Line 7 – Account number(s)
- Part I – Taxpayer Identification Number (TIN)
- Part II – Certification.
Who is required to fill out a W 9 form?
W-9 Forms and LLCs Those who should fill out a W 9 are those who are working as independent contractors or freelancers, because the W-9 is the form used by the IRS to help gather information about such workers. The W-9 form is an informational reporting tax form, meaning that it provides information to the IRS about taxable entities.
What do I need to fill out as an independent consultant?
Form W-9. When a company hires an independent consultant, it will have the consultant first fill out Form W-9, which is required by the IRS. The form is a request for the consultant’s tax ID number.
Do you need a W-9 if you are a limited liability company?
According to the IRS, corporate contractors do not need a W-9 because they don’t require a 1099. Limited liability company contractors, on the other hand, will need a W-9 if they file as a single entity instead of as a corporation.
Do you have to file a W9 if you are a freelancer?
No, the W-9 is only used to record and file information for an independent contractor or freelancer and more often than not isn’t even seen by the IRS. A business does not deduct income tax from an independent contractor or freelance and neither does it pay Medicare or Social Security on their behalf.
