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.
Many entrepreneurs want to go directly to the source the moment an idea strikes or at the first sign of growth, but you need to first prove the business to yourself before asking others to believe in it.