Line 6 is your city, state, and zip code. Enter your number, street, and apartment or suite number. If you are exempt from backup withholding, you can enter a code in line 4 that explains your exemption. Individual / sole proprietor or single-member LLC.If you check the LLC option, you will also need to explain the tax classification you have chosen for your LLC. The third box is where you need to check the federal tax classification of the person or entity listed in line 1. A partnership, multiple-member LLC, C corporation, or S corporation should enter any business name, trade name, or DBA on line 2. If you are a sole proprietor or single-member LLC, you should enter your business name or “doing business as" name (DBA) on line 2. The second line is for your business's name, if any. Partnerships, multiple-member LLCs, C corporations, and S corporations should enter the entity's name as shown on the entity's tax return. If you are a sole proprietor or single-member limited liability company (LLC), you should enter your own name on line 1 as well. If you are an individual and report your income from the contract work on Schedule C, Profit or Loss from Business, this line is straightforward. The first line is your name as shown on your tax return. The current Form 1099-MISC is used to report other miscellaneous payments such as: In prior years, this information was reported on Form 1099-MISC. You will use the information provided to you on the W-9 to complete Form 1099-NEC, Nonemployee Compensation, or Form 1099-MISC, Miscellaneous Income.Īs of 2020, Form 1099-NEC is used to report nonemployee compensation for independent contractors or freelancers. When Do I Need to Request a Form W-9?Īs a small business owner, it is important to collect a W-9 for any person or entity you pay more than $600 in a tax year. The business needs pertinent information from you to report the payments accurately, such as your name, address, social security number (SSN) or employer identification number (EIN), and your federal tax classification. When a business pays more than $600 to a single taxpayer during the year, it must submit an informational return to the Internal Revenue (IRS) to disclose the payments. If you do consulting or gig work for a business without being on its payroll, you will likely be asked to complete a W-9. Why Am I Being Asked to Complete a Form W-9? The independent contractor or vendor must fill out the W-9 and submit it to the business that pays them. Businesses use Form W-9, Request for Taxpayer Identification Number and Certification, to gather information about independent contractors and other vendors.
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