Form W-9 is a frequently used IRS form by freelancer or self-employee. Learn how to fill out a W-9 form in 2023 as you may be asked to submit and send a W-9 form if you work as an independent contractor, freelancer, or gig employee (self-employed), or receive earnings such as interest or dividends.

This allows them to correctly prepare a 1099 form, report the payments they make to you at the end of the year, and understand whether backup withholding applies to you. And, if you work with independent specialists in your company, you should request completed W-9 forms from these individuals.

Who asks for a completed W-9?

It is the responsibility of the person or business paying you to request the W-9 form from you. W-9s are not required to be filed with the IRS by the requester. These forms are kept on file by the person who prepares other tax returns, including 1099s and 1098s. This individual also determines whether you must withhold federal taxes on payments you receive based on this information.

Who Is Required to Fill Out Form W-9?

If you receive payments as an independent contractor, pay interest on your mortgage, contribute to an IRA account, or receive payments from a company where you need to report information to the IRS, you will usually submit a W-9 form.

Businesses and people use W-9 forms to get personal information about you, such as your TIN (Taxpayer Identification Number).

When Should You Request a W-9?

If you plan to pay contractors or freelancers, you should require that they complete a Form W-9 before beginning the project. The work could be complicated if this step is not taken.

If a person or business hasn’t already provided you with a Form W-9, be sure to request one before beginning work. You may be required to pay withholding taxes on the money you pay them if you fail to do so.

How to Fill out a W-9 Form

Before you start filling out Form W-9, you have to gather some information. You will need the name, address, and taxpayer identification number of the person or entity that is requesting Form W-9. You will also need your own taxpayer identification number. This can be your Social Security number or your employer’s identification number.

Single-member LLC

1. For federal income tax purposes, the Internal Revenue Service doesn’t count as a limited liability company with only one member as a separate entity. In this situation, the only representative of an LLC should file taxes like a sole proprietor.
2. On the first two lines of the W-9, write your name and the official name of your limited liability company (LLC). On the first line, enter the name under which you report your tax returns. On the second line, write the LLC’s legal name.
3. Enter the address, city, state, and zip code of the business.
4. Check the “individual/sole proprietor/single-member LLC” box for your tax classification, not the “limited liability company” box.
5. Type in your Social Security number. The IRS lets you enter an employee identification number (EIN) you got when you were a sole proprietor.
6. Sign the document and send the W-9 form to the person who asked for it.

Company or business partnership?

Follow the steps below if the LLC is a company or a partnership:

1. Enter the LLC’s name as it appears on the tax papers. If the LLC has a second business name, write it on the “Business Name” line on the second line.
2. Mark the box that says, “Limited Liability Company.”
3. Write “P” for partnership, “S” for S Corporation or “C” for corporation on the tax classification line.
4. Enter the address, city, state, and zip code of the business.
5. Type in the LLC’s employer ID number.
6. Sign and date the W-9 form and send it to the person who asked for it.

The W-9 form must be filled out for each client a freelancer or contractor has worked for. Keep a copy of the W-9 form for your archives to be on the safe side. When tax time comes around, you can use it to get in touch with a client if you don’t have a 1099-MISC.

 

 

Conclusion

For independent contractors, freelancers, and self-employed individuals, a W-9 form is an essential document. W-9s serve as agreements that you are responsible for paying these taxes independently, not withheld by the companies you work for.

This form should not be sent to the Internal Revenue Service. The document is sent to employers upon request. You should always double-check your information when filling out an IRS W-9, even though it is relatively straightforward.