Should I use a W-9 document when obtaining a new business client?
I run a small IT/computer maintenance and repair business. I am now attempting to gain business clients and I was wondering, do I need to fill out a W-9 form for my business clients' payments or do I just have them pay me as my residential clients do?
The W9 form is for the protection of the business when they are paying a subcontractor for services. It enables them to 1099 that subcontractor if services are greater then $600 in a calendar year and the subcontractor is not incorporated.
Sound tax and accounting procedures are essential to growing a financially secure company. But multiple hiccups threaten the accuracy of these processes, elevating the risk of compliance penalties and reputational harm.