Do I need to have my farrier, vet, and/or chiropractor fill out a W9?
I recently became a business (an LLC), and I was wondering when and who I should send out W9s to? For instance, do I need to request a completed W9 from my farrier or vet?
Instructions for the Requester of Form W-9 (9/2007)
The instructions for filling out, and who needs to fill out, the w-9 is on this page. We have the clients have them filled out for their contractors. This ensures that they have the proper insurance certifications, just in case something happens while they are working for you.
If they are registered with their respective states as either a corporation, partnership, or limited liability company, you will not have to issue a 1099 at the end of the year.
On the other hand, if they are a private person, working as a sole-proprietor, you WILL have to issue a 1099 at the end of the year unless you have them on an actual payroll with taxes being withheld.
IF you eventually decide you want to go the payroll route, make sure you have them fill out the W-4, Your state withholding form (can be found on the state's tax website), and the I-9.
I do work with payrolls, taxes, and bookkeeping. If you need any help, send me a pm. Also, be sure and keep ALL business related receipts. As an LLC, the income or loss rolls directly into your personal taxes. You will be paying the self-employment tax on it. Once you get established and your income is substantial and steady, you might want to see someone about incorporating or filling out the appropriate form to be treated as an S-Corp.
Charlicata, LLCs do receive 1099s from their clients; it's required by law.
I currently work in the energy industry, and the company I work for is classified as an LLC. We receive 1099s from all of our clients who have paid us funds during the fiscal year.
I've worked for more than one LLC during my lifetime, and they've always received 1099s from their clients. I've also sent 1099s to LLCs that my company has done business with.
An incorporated business (Inc.) shouldn't receive a 1099, but LLCs and individuals most definitely should.
Also, if you've paid for materials and goods as well as services, you can only issue a 1099 for the service amount. Paying for materials and goods isn't considered compensation, just reimbursement of expenses.
1099s are usually sent out for non-employee compensation although there are other criteria, such as monies paid on rental properties.
OP, if you're confused about the tax laws and who should receive what, ask your accountant or contact the IRS.
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