Received a W-9 and feeling a little lost? Don't sweat it! This simple form is crucial for freelancers, contractors, and anyone getting paid as an independent entity. Think of it as your business's ID card for tax purposes.
Basically, the W-9 requests your Taxpayer Identification Number (TIN), which is either your Social Security Number (SSN) if you're a sole proprietor or your Employer Identification Number (EIN) if you operate as a business like an LLC or corporation. The person or company requesting the W-9 needs this information to report your earnings to the IRS.
Filling it out correctly is key! Double-check your name, address, and TIN. Providing inaccurate information can lead to backup withholding, meaning they'll withhold a percentage of your payments and send it directly to the IRS. Keep a copy of your completed W-9 for your records. Now go forth and get paid!
