Rules for the design of form W-9 for the LLC owners

This company format has a number of advantages compared with the status of a corporation:

  • Limited liability company is considered not as an individual (as in the case of a corporation), but as a legal entity;
  • Profits are taxed only once, when registering a tax return for each of the LLC members;
  • It is required to fill out the W-9 form, followed by using the information in it to fill out the 1099 form. It should be remembered that the W 9 form LLC tax classification for this type of organization is different from other types. Neither LLC nor its owners submit the form directly to the IRS, but only use the information provided in it to fill out a single form 1099, which is submitted to the tax office.

Thus, such an enterprise structure has a number of advantages, including the possibility of “through taxation”. However, complete W9 form 2020 fillable for LLC is mandatory for any independent contractors.

Order of how to fill out W 9 single member LLC

There is a special procedure for filling out this document for this type of organization. Instruction includes several steps below:

  • The first step is to download an unfilled example form on the IRS website on the official website;
  • The second step is to fill in personal information, including name, surname, account, name of the organization, as well as the address of the independent contractor;
  • The third step is an indication of the tax status of the organization. How to File a W-9 for an LLC can be obtained from your business partners;
  • The fourth step – indicate the individual tax number of the contractor in the bank, if the organization belongs to one member;
  • The fifth step is the signature of all owners of the organization.

Thus, the instruction for filling out the form for this type of organization has its advantages and features, which can be laid out in five steps. Using these W 9 instructions single member LLC can save a lot of time.

Profitable or not

Using this format for your company is beneficial both from the minimum taxation, and from the minimum of required papers, as well as efforts. LLC status is quite attractive for businessmen from this point of view and can be used to reduce costs and documentation at the enterprise.