Your LLC needs W-9s to abide to all payers beyond $600 annually.
One way that a subcontractor differs from an agent is that a subcontractor pays his own taxes — both assets and self-employment, according to the IRS. Subcontractors ability charge to accommodate a aborigine identification number, or TIN, to audience for advertisement purposes.
IRS Anatomy W-9, “Request for Aborigine Identification Cardinal and Certification,” is acclimated by administration to abode assets becoming by subcontractors. If an employer is ambiguous as to the actual cachet for a worker, again Anatomy SS-8 can be abounding out so that the IRS can accomplish a determination. If a W-9 is required, it is acclimated to access the subcontractor’s aborigine identification number, or TIN. The TIN is either a person’s amusing aegis cardinal or employer identification number. The employer identification number, or EIN, is assigned by the IRS at the appeal of a business entity.
The W-9 is acclimated by an employer to accomplish Anatomy 1099-MISC, “Miscellaneous Income,” for a subcontractor. Anatomy 1099-MISC is the end-of-year certificate that is accustomed to a subcontractor so that he can book his tax return. A subcontractor receives a 1099-MISC from anniversary applicant for whom he his balance absolute $600 or added in a year. A aggregation that employs a subcontractor is brash to accumulate the W-9 on book for four years, the IRS reports.
Form W-9 is provided to a subcontractor by an employer back he begins an assignment. On the form, a subcontractor should accommodate his name, address, and business article status, such as “sole proprietor.” in Part 1 of the W-9, a subcontractor provides his Amusing Aegis cardinal or EIN, if applicable. Part 2 of the anatomy is area a subcontractor certifies that the provided TIN or EIN is correct, that he is a U.S. aborigine or national, and that he is not accountable to advancement denial by the IRS.
The IRS explains that a subcontractor who is a sole freeholder can accommodate either his Amusing Aegis cardinal or employer identification cardinal to the IRS. However, application the SSN is adopted for sole proprietors. A sole freeholder should account their name on the anatomy area indicated. A subcontractor whose business is congenital should account the name of the business article instead of his name, the IRS notes.
A.K. Jayne has accounting and edited book and online agreeable back 2006. In addition, she has acknowledged assistant/paralegal acquaintance in areas including wills and trusts and ancestors law. Her accessories accept appeared in the “Philadelphia Inquirer,” “New Jersey Record” and “Burlington County Times.” Jayne completed an Associated Press internship and is an alum of Syracuse University’s Newhouse School of Public Communications.
Jayne, A.K.. “Do Subcontractors Accept to Fill Out a W-9?” Small Business – Chron.com, http://smallbusiness.chron.com/subcontractors-fill-out-w9-31850.html. Accessed 18 October 2018.
Jayne, A.K.. (n.d.). Do Subcontractors Accept to Fill Out a W-9? Small Business – Chron.com. Retrieved from http://smallbusiness.chron.com/subcontractors-fill-out-w9-31850.html
Jayne, A.K.. “Do Subcontractors Accept to Fill Out a W-9?” accessed October 18, 2018. http://smallbusiness.chron.com/subcontractors-fill-out-w9-31850.html
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