W9

4543 Views 21 Replies 6 Participants Last post by HARRY304E, Oct 25, 2013

HackWork

Discussion Starter · Oct 24, 2013

Why do some customers want a W9 form? Is this so they could 1099 you?

Also, on the W9 under the option for LLC it says to "Enter the tax classification (C=C corporation, S=S corporation, P=partnership)".
What if you are none of the 3?

Third, from what I read it seems as if they want you to put your own name and SS# if you are a single owner LLC. I don't know if I like handing my SS# to random customers, I thought that was the whole reason why I got an EIN.

1 - 20 of 22 Posts

drspec

· #2 · Oct 24, 2013 (Edited)

the only ones that should request a w9 are contractors you sub from so they can 1099 you

a homeowner shouldn't and wouldn't need one imo

as far as LLC, the federal govt doesn't recognize it, you have to file as one of the options you listed.

my company is a single member LLC that files as an S corp

if you are an LLC, you cant file as a sole proprieter

if you have an EIN then there is no reason to give out your SS#

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Reactions: 1

480sparky

· #3 · Oct 24, 2013

If the HO sells the property, they can deduct the cost of improvements. That reduces their tax liability. Hence the request.

rewire

· #4 · Oct 24, 2013

this should be answered by your accountant for your specific filling status.

HackWork

Discussion Starter · #5 · Oct 24, 2013

drspec said:
as far as LLC, the federal govt doesn't recognize it, you have to file as one of the options you listed.

my company is a single member LLC that files as an S corp

if you are an LLC, you cant file as a sole proprieter

I'm not following this part. The only options are S or C corp and partnership. I'm not any of them. Which one would I choose? I'm a single member LLC filing as a sole proprietor.

rewire

· #6 · Oct 24, 2013

HackWork said:
I'm not following this part. The only options are S or C corp and partnership. I'm not any of them. Which one would I choose?

you need to give your SS# as the irs considers a sole prop LLC as a disregarded entity.

HackWork

Discussion Starter · #7 · Oct 24, 2013

rewire said:
you need to give your SS# as the irs considers a sole prop LLC as a disregarded entity.

That's pretty much what I am reading on another website, but I don't like it.

drspec

· #8 · Oct 25, 2013

HackWork said:
I'm not following this part. The only options are S or C corp and partnership. I'm not any of them. Which one would I choose? I'm a single member LLC filing as a sole proprietor.

talk to your accountant. if you are an LLC you aren't a sole proprietor.

your accountant more than likely will file you as an s corp, but you need to clear this up with him/her

I grabbed this off the web

A limited liability company (LLC) cannot be a sole proprietor, but an individual can do business as an LLC. If you are a sole proprietor, you own and operate your own business, but it is not a corporation. A limited liability company is a business structure that is not a corporation and not a sole proprietorship. If you wish, you can register a business that you own and operate by yourself as a LLC, protecting you from business liabilities while still keeping the tax benefits of a sole proprietorship

drspec

· #9 · Oct 25, 2013

rewire said:
you need to give your SS# as the irs considers a sole prop LLC as a disregarded entity.

I NEVER provide my ss# always my EIN

and no company has ever called me on it

Reactions: 1

rewire

· #10 · Oct 25, 2013

HackWork said:
That's pretty much what I am reading on another website, but I don't like it.

here are the W( instructions looks like you can use either

If you are a single-member LLC that is disregarded as an entity separate from its owner (see Limited Liability Company (LLC) on page 2), enter the owner’s SSN (or EIN, if the owner has one).

HackWork

Discussion Starter · #11 · Oct 25, 2013

drspec, I believe rewire is correct and I would have to fill out that form as a sole proprietor.

I am not filing as an S Corp right now and probably won't be for a few years if ever.

rewire

· #12 · Oct 25, 2013

drspec said:
I NEVER provide my ss# always my EIN

and no company has ever called me on it

appears you can use both the IRS prefers aSS# for single memberLLC
If you are a single-member LLC that is disregarded as an entity separate from its owner (see Limited Liability Company (LLC) on page 2), enter the owner’s SSN (or EIN, if the owner has one).

drspec

· #13 · Oct 25, 2013

HackWork said:
drspec, I believe rewire is correct and I would have to fill out that form as a sole proprietor.

I am not filing as an S Corp right now and probably won't be for a few years if ever.

did you incorporate with the state of NJ?

is your company name Hackwork Electric Company LLC?

if so then you ARE NOT a sole proprietor

HackWork

Discussion Starter · #14 · Oct 25, 2013

drspec said:
did you incorporate with the state of NJ?

is your company name Hackwork Electric Company LLC?

if so then you ARE NOT a sole proprietor

I formed an LLC with the state.

If I am not supposed to choose sole proprietor on that form, which option am I supposed to choose under LLC? S corp, C corp, or partnership? I am none of the above.

drspec

· #15 · Oct 25, 2013

HackWork said:
I formed an LLC with the state.

If I am not supposed to choose sole proprietor on that form, which option am I supposed to choose under LLC? S corp, C corp, or partnership? I am none of the above.

Ive always filed as an s corp

I just found this by googling

see if it helps

http://www.preceptlaw.com/2012/01/how-to-fill-out-a-w-9-for-a-single-member-llc/

HackWork

Discussion Starter · #16 · Oct 25, 2013

drspec said:
Ive always filed as an s corp

That's not beneficial to me right now.

I just found this by googling

see if it helps

http://www.preceptlaw.com/2012/01/how-to-fill-out-a-w-9-for-a-single-member-llc/

That's agreeing with rewire and saying that I should list myself as a sole proprietor instead of an LLC.

So I will do that but I will only put my EIN and not my SS#.

I'll run this past my accountant next time I talk to him. I figured it would be good thread material in the meantime.

rewire

· #17 · Oct 25, 2013

HackWork said:
I formed an LLC with the state.

If I am not supposed to choose sole proprietor on that form, which option am I supposed to choose under LLC? S corp, C corp, or partnership? I am none of the above.

Sole proprietor. Enter your individual name as shown on your income tax return on the "Name" line. You may enter your business, trade, or "doing business as (DBA)" name on the "Business name/disregarded entity name" line.

f you are an LLC that is disregarded as an entity separate from its owner under Regulation section 301.7701-3 (except for employment and excise tax), do not check the LLC box

Reactions: 1

drspec

· #18 · Oct 25, 2013

HackWork said:
That's not beneficial to me right now.

That's agreeing with rewire and saying that I should list myself as a sole proprietor instead of an LLC.

So I will do that but I will only put my EIN and not my SS#.

I'll run this past my accountant next time I talk to him. I figured it would be good thread material in the meantime.

and I can admit when I am wrong

I swear I had this conversation with an old accountant when I first started and she....well, let's just say there's a reason she's no longer my accountant :laughing:

HackWork

Discussion Starter · #19 · Oct 25, 2013

drspec said:
and I can admit when I am wrong

I wasn't trying to say "You're were wrong you asshole!" :laughing: Just trying to get to the bottom of it :thumbsup:

drspec

· #20 · Oct 25, 2013

HackWork said:
I wasn't trying to say "You're were wrong you asshole!" :laughing: Just trying to get to the bottom of it :thumbsup:

and I wasn't taking offense

I actually learned something :thumbup:

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