Once you have decided to run your business as an independent contractor or a freelancer, as per the IRS you would be considered self-employed. Therefore you will have to report all the earnings as your personal tax return. Here is where you need to learn about the individual sole proprietor W-9 form, which is used to match your revenues with the IRS records.
When do you have to provide the W-9?
The sole proprietorship is also known as the Request for Taxpayer Identification Number and Certification. It contains the details of the payment you have taken from your customer or client, and you will have to use it if the total income you have earned is over $600. However, you shouldn’t have any issue with this document, as the document is quite short and easy to fill out.
How to fill out the sole proprietor W-9?
The filled form has to contain the individual vendor’s details:
- name of your business, which can be also your name;
- TIN (taxpayer identification number);
- contact details;
- your legal address.
Where do I find my Taxpayer Identification Number?
If you are providing the services as a freelancer, then the TIN can be one of the following:
- your Social Security number;
- the Employer Identification Number for your business.
The last one you can get with the help of the IRS. Both have the same value. Be sure to provide the details accurately, as the false data or mistakes can result in penalties against you and undesired consequences for your business. Also, note that you are not the one who has to send the filled document to the IRS. All you need to do is to fill the document and pass it to your employer.