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Running your own business can be challenging and some things come along that may stump you. One of the things we find that business owners have a few questions about is the W-9 form.
We went right to the source and below, you will find the explanation from the Internal Revenue Service on what a W-9 is and when you will be required to have one on file.
Anyone who did work for a company but was not an actual employee of that company is required to fill out W-9 federal income tax forms for every company for which they performed non-employee work. W-9 forms are known as “information reporting” federal income tax forms. If the company you performed work for is required to file any kind of tax return they must get your information. If your tax information is not already in their records, they will ask you to file a form W-9 to provide this info.
Who might be asked to fill out a form W-9? Freelancers, for one. Freelancers are brought in to perform work on projects that are short term. This involves work such as writing, research, or graphic design work. They aren’t needed full time, as the work will run out. Freelancers are required to fill out W-9 income tax forms.
Another group that uses the W-9 income tax forms to report information to clients is consultants. Consultants come in and advise a company on public relations, cost cutting, or personnel training, among other things. If you’ve consulted with a company, you are required to fill out W-9 income tax forms for each company you consulted with.
Other independent contractors, such as custodians, landscapers, or repair people must also fill out W-9 income tax forms. This is true even if the work was carried out over a significant period of time. Contractors working with a business for many years still turn in W-9 income tax forms.
We have attached a blank W-9 form for your reference. W9 Form blank
Running your own business can be both rewarding and stimulating. We hope these simple blog posts answer some questions and give you resources you can count on. To keep abreast of these informational posts, sign up for our updates in the Follow Us section on the right-hand side of this page.