Contractor Talk - Professional Construction and Remodeling Forum banner
1 - 16 of 16 Posts

·
Registered
Joined
·
9 Posts
Discussion Starter · #1 ·
I am a licensed electrical contractor, my business is an LLC. I have a new customer asking me to do work and they asked for a certificate of insurance and W9.

The CoI is normal, but the W9 is a first. I thought the only reason to ask for a W9 is when you are going to 1099 the person? And I thought you only 1099 a person , not a company?

What's the reasoning for this?
 

·
Registered
Joined
·
9 Posts
Discussion Starter · #3 ·
The thing I don't like about the W9 form is that if you are a single owner LLC you should be writing your SS# in.
 

·
Registered
Joined
·
649 Posts
Metalhaste said:
Again, I am asking why? You don't have to, the IRS doesn't require it, so I am curious why you do it.
Well I think they do require it. My accountant told me to get W-9's from everyone, so I do. Actually all the other businesses I do business with ask me for also and I oblige. It's not really a big deal. Why would you not give them one?
 

·
Registered
Joined
·
371 Posts
I believe the biggest reason for the w9 and 1099 is it makes it easier for the person issuing the 1099 to right off the payments made to other companies.
 

·
.....
Joined
·
1,745 Posts
Again, I am asking why? You don't have to, the IRS doesn't require it, so I am curious why you do it.
For no other reason then to have all their information on hand so you can send them a 1099.

When I first started out, I subbed out a few jobs to guys that I knew. I knew their name and that they lived in anytown and they did good work.

Come tax time I need to send them a 1099 (so Uncle Sam knows what I'm doing with my money). Now I really don't know anything about them. Other than they did good work and I paid them. So now I have to call around and get this information for my taxes.:mad:

W-9 them from the beginning and you're set. Info on hand when you need it.
 
1 - 16 of 16 Posts
Top