For example, a sole proprietor could form an LLC, or a company could change its business address. In the case of an independent contractor or corporate vendor, there could be several other reasons. It would normally only happen when someone gets married and changes their last name. That said, there are certain times when a change is necessary. In most cases, you will be able to use the same W9 from year to year. Keeping your tax documents in order is easier than scrambling to get them together at the end of the year. Make sure to get your W9 from each vendor as soon as possible. Good accounting software will alert you when 1099 is necessary. That said, if you did not make enough reportable payments, you wouldn’t need to fill out 1099. This serves as a record for how much you paid out. Under most circumstances, you will need to fill out a Form 1099-MISC or 1099-NEC at the end of each calendar year. These entities will need to fill out W-8 forms instead. The only vendors who don’t need to fill out a W9 are foreign vendors. That way, you have everything you need when it’s time to file your taxes. They may even leave every other field blank. They’ll simply enter an exempt payee code to provide a record of the vendor relationship. Even vendors who are exempt from backup withholding will still need to fill one out. Essentially, any business relationship where you are the payor. You should get W9 forms from vendors, employees, and independent contractors. When you make reportable payments, you’ll then have a correct taxpayer identification number. The purpose is to create a record of the business relationship. If the vendor is not an individual or sole proprietor, they’ll need to fill in their taxpayer identification number (TIN) instead. In addition to the vendor name and address, it will also require a Social Security number. The W9 is only one page long, and asks for a small amount of information. It serves as a record that a business has paid out funds to somebody. So, Why Would a Vendor Need This Information?Ī W9 form is a form an employer or client files with the IRS every year. Here’s everything you need to know about W-9 forms, and why a vendor might ask you for one. This ensures that you, your employees, and your vendors, maintain compliance with the law. Each employee or vendor must complete this simple, one-page form when they’re first hired. One of the most important forms is the W9. If you’re a business owner, you’ll have to manage all of these, and keep everything from slipping through the cracks. Tax time reporting involves dozens of forms, all with their own names and numbers. Why Would a Vendor Request a W9 Form? Purpose Behind the Need.Read AugWhy Would a Vendor Request a W9 Form? Purpose Behind the Need

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