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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?
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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.
Pam Newman is a Certified Management Accountant, author and Certified QuickBooks ProAdvisor for Financial and Point-of-Sale software. She is also president of RPPC, Inc., which provides customized business development services.
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