There are several advantages to filling out this document for the owner of this type of organization:
- US law Limited liability company, unlike corporations, is considered not as an individual, but as an independent legal entity;
- Profits are taxed only once, when making a tax return for each of the LLC members;
- Form W-9 is required, followed by using the information in it to fill out Form 1099. It should be remembered that the W 9 form for this type of organization is different from other types. Therefore, it is advisable that the owner consult US tax specialists. 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.
All this indicates that each owner of the organization, with such a structure of activity, is very profitable to work in the USA and fill out tax statements. Therefore, it is very important to fill out the form in time to avoid unnecessary problems with the IRS.
How to file a W-9 for LLC owners
There is a special procedure for filling out this document for this type of organization. Instruction includes several steps below:
- The first stage is to download an empty example form on the IRS website;
- The second stage – it is necessary to fill in personal information, including first name, last name, account, name of the organization, as well as the address of the independent contractor;
- The third stage 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 stage – indicate the individual tax number of the contractor and senior, if the organization belongs to one member;
- The fifth stage is the signature of all owners of the organization. After that, the document is sent to mail, e-mail or through the mailbox.
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 instructions to fill out an LLC foundation form can save you 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 securities, as well as efforts. LLC status is quite attractive for businessmen and suppliers from this point of view and can be used to reduce costs and documentation in the enterprise. You can find out how to fill out a W-9 when not a contractor in special articles on our website.