Someone in the forum mentioned submitting a W-9 form to the client because we are independent contractors. My company is incorporated, is that still required? Do all of you submit a W-9 to the client?

A w-9 is an IRS form requesting your tax id number. This is to assist in submitting 1099s at the end of the year; a copy of the 1099 is also sent to the IRS. 1099s are required to be issued to anyone who is not incorporated and is paid $600 or more in a year (vendors and non-employees). So, no, you don't have to automatically submit w-9s for your incorporated company. You may, however, receive some to be completed. It is only a quick one-page doc and is no big deal to fill out and return to the requester.

You will need to request them yourself from anyone you pay more than $600 during the year who is not incorporated. I generally send them with my first payment if they payee is not incorporated or I don't know their status.

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

I have a question regarding 1099 tax id numbers. I am a sole operator, so can I use my ss # for my tax id number or do I have to get one?

Yes, you can use your SSI. Easy, huh?

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

Originally Posted by debsoffice08

I have a question regarding 1099 tax id numbers. I am a sole operator, so can I use my ss # for my tax id number or do I have to get one?

I agree, you can use your SS#, however, in this day & age of ID theft, do you really want your SS# floating around where it does not HAVE to be? Especially when it is so easy & free to get an EIN number?
I always recommend to my clients that they get an EIN from the IRS just because of that reason. Better safe than sorry.

I was going to just use my SS#, but when I realized how easy it is to get an EIN, I've decided to go that route. Might as well keep the business as separate from my personal life as possible.

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Stephanie
New VA in the research phase :daisy:

Originally Posted by StephanieP

I was going to just use my SS#, but when I realized how easy it is to get an EIN, I've decided to go that route. Might as well keep the business as separate from my personal life as possible.

I truly believe that is the best way to go!

Originally Posted by ReAnn

I agree, you can use your SS#, however, in this day & age of ID theft, do you really want your SS# floating around where it does not HAVE to be? Especially when it is so easy & free to get an EIN number? I always recommend to my clients that they get an EIN from the IRS just because of that reason. Better safe than sorry.

Can you get an EIN even if you've been in business under your SS# for awhile?

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~Tina Marie Hilton of Clerical Advantage
& founder of VA Survival School

Yes! In fact you can know get an EIN immediatly from the IRS online. To apply online go to: http://www.irs.gov/businesses/small/...102767,00.html
You just have to answer a few questions & you will get an EIN right then & there. Easy-peasy!!

It took me forever to figure out what I needed to do for taxes! Now I see all the info I needed right here. Wish I had found this forum sooner. But glad I did now. Thanks