Form W-9: Why You Should Collect It Before Paying Any Contractor

Form W-9 is a simple IRS form that collects a vendor's legal name, business entity type and taxpayer identification number (TIN). It's one of the easiest compliance steps to handle, and one of the most painful to skip.

Why you need W-9s

At year-end, you may need to issue Form 1099-NEC or 1099-MISC to contractors and other vendors. You can't file those forms accurately without the information on the W-9.

Chasing contractors for W-9s in January, when some are hard to reach, is stressful and leads to late or incorrect filings.

When to request one

Before you make the first payment, request a W-9 from:

• Independent contractors and freelancers
• Sole proprietors and single-member LLCs
• Partnerships and multi-member LLCs
• Attorneys and law firms
• Landlords (for business rent paid to individuals or partnerships)

With the 1099 threshold rising to $2,000 for payments made in 2026, you may issue fewer 1099s. Keep collecting W-9s anyway. You often don't know at the start of the year who will cross the threshold.

What the W-9 tells you

• Legal name and business name
• Tax classification (individual/sole proprietor, C corp, S corp, partnership, LLC)
• Whether they're exempt from 1099 reporting
• TIN: a Social Security number or EIN
• Address for mailing the 1099
• Signature certifying the information is correct

What if a contractor refuses?

If a vendor won't provide a correct TIN, you may be required to apply backup withholding (currently 24%) to payments and send it to the IRS. Make providing a W-9 a condition of being paid.

Keep W-9s secure

W-9s contain sensitive information, often Social Security numbers.

• Request them through a secure portal or encrypted email
• Don't store them in shared folders
• Keep them for at least four years after the last 1099 filed

Verify when it matters

The IRS offers a TIN matching program for payers who file information returns electronically, which can help catch mistakes before filing.

Giving a W-9 as a business owner

Your clients may ask you for a W-9. If you have an EIN, use it instead of your Social Security number. It's one of the best reasons to get an EIN.

The bottom line

Collect a W-9 before the first payment, store it securely and enter vendor details in your bookkeeping software. January 1099 filing becomes a simple report instead of a scramble.

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Need help getting this right? TRIG Bookkeeping & Tax Services helps new business owners in Washington with company registration, monthly and annual bookkeeping, and government compliance. Contact us to talk about your business.

This article is general information, not legal or tax advice for your situation. Tax rules and fees change, so confirm current details with the IRS, the Washington Department of Revenue, or a qualified professional.