What Is a W-9 Form, and When Do I Need One?

The taxpayer information on a W-9 is used by a business to report to the IRS on payments made to independent contractors and other vendors. Should you be filling out a W-9 or W-4? It depends on whether you're an independent contractor or an employee.

Find out more about Business Accounting with LZ Books

Start Now
Trustpilot star rating bar
Man in apron on phone surrounded by plants
Start Now
Alicia Tuovila
by

Alicia Tuovila

Updated on: July 3, 2026
Read time: 3 min

Businesses use Form W-9, Request for Taxpayer Identification Number and Certification to gather information about independent contractors and other vendors. The independent contractor or vendor must fill out the W-9 and submit it to the business that pays them.

Woman smiling while sitting at a desk, looking at a laptop screen and taking notes in a notebook.

Why am I being asked to complete a Form W-9?

If you do consulting or gig work for a business without being on its payroll, you will likely be asked to complete a W-9.

When a business pays more than $600 to a single taxpayer during the year, it must submit an informational return to the Internal Revenue (IRS) to disclose the payments. This form is called Form 1099-NEC. The business needs pertinent information from you to report the payments accurately, such as your name, address, Social Security number (SSN) or Employer Identification Number (EIN), and your federal tax classification.

“It is a mistake for businesses to treat the W-9 like a year-end form instead of part of vendor onboarding. If you wait until January to collect it, you are much more likely to run into name and TIN mismatches, missing forms, or a contractor who has stopped responding. It is best to get the W-9 before the first payment goes out, confirming the legal name matches the tax ID record, and keeping that documentation in one place so 1099 reporting is not a scramble later.”

Quotation mark
Rebekah Mears, Esq.

When do I need to request a Form W-9?

As a small business owner, it is important to collect a W-9 for any person or entity you expect to pay more than $600 in a tax year. You will use the information provided to you on the W-9 to complete Form 1099-NEC, Nonemployee Compensation, or Form 1099-MISC, Miscellaneous Income.

“Collecting the W-9 before issuing the first payment is extremely important, and not after crossing the $600 threshold. Waiting creates leverage problems if the vendor goes quiet or refuses to cooperate. If someone will not provide a completed W-9, that is a red flag you need to address early. In some cases, you may need to withhold payment or consider backup withholding rules to protect the business. Getting the form upfront keeps you in control and avoids a scramble when reporting deadlines hit.”

Quotation mark
Rebekah Mears, Esq.

Going forward, Form 1099-NEC will be used to report nonemployee compensation for independent contractors or freelancers. In prior years, this information was reported on Form 1099-MISC. The current Form 1099-MISC is used to report other miscellaneous payments such as:

  • Rents and royalties
  • Prizes
  • Medical and health care payments
  • Crop insurance proceeds
  • Fishing boat proceeds

What information is on Form W-9?

The first line is your name as shown on your tax return. If you are an individual and report your income from the contract work on Schedule C, Profit or Loss from Business, this line is straightforward. If you are a sole proprietor or single-member limited liability company (LLC), you should enter your own name on Line 1 as well. Partnerships, multiple-member LLCs, C corporations, and S corporations should enter the entity's name as shown on the entity's tax return.

The second line is for your business's name, if any. If you are a sole proprietor or single-member LLC, you should enter your business name or “doing business as" name (dba name) on Line 2. A partnership, multiple-member LLC, C corporation, or S corporation should enter any business name, trade name, or dba on Line 2.

“Entity naming issues on a W-9 cause more problems than most people expect. It is a particularly common mistake for contractors to list their LLC name on one line but use a personal Social Security number, or check the wrong tax classification box after making an S corp election. That mismatch can lead to IRS notices and backup withholding exposure for the business. The best practice is to align the name, tax classification, and TIN exactly as they appear in IRS records, and double-check that alignment before relying on the form for 1099 reporting.”

Quotation mark
Rebekah Mears, Esq.

The third box is where you need to check the federal tax classification of the person or entity listed in Line 1. Only select one option here. If you check the LLC option, you will also need to explain the tax classification you have chosen for your LLC. The options are:

  • Individual/sole proprietor or single-member LLC
  • C corporation
  • S corporation
  • Partnership
  • Trust/estate
  • LLC

If you are exempt from backup withholding, you can enter a code in Line 4 that explains your exemption.

Line 5 is for your address. Enter your number, street, and apartment or suite number. Line 6 is your city, state, and ZIP code. This is where your 1099-NEC or 1099-MISC will be mailed. You will need to add this information to your tax return when you file your taxes.

What is the difference between a W-9 and a W-4?

Independent contractors fill out a Form W-9. However, if you are an employee of a business, you should fill out Form W-4, Employee's Withholding Certificate, instead. Businesses withhold federal and state income taxes, Social Security taxes, and Medicare taxes for their employees and pay the taxes on their behalf.

As an independent contractor, you are responsible for tracking your income and paying estimated taxes on a quarterly basis. If you are an employee, you will receive a Form W-2 wage and tax statement from your employer at tax time. If you are an independent contractor, you will receive Form 1099-NEC from the business that pays you.

Find out more about Business Accounting with LZ BooksStart Now
Twitter logoFacebook logoLinkedIn logoReddit logo

This article is for informational purposes. This content is not legal advice, it is the expression of the author and has not been evaluated by LegalZoom for accuracy or changes in the law.