W-9

Collect it before the first payment. At year end you use it to file a 1099 for vendors you paid enough to require one.

The W-9 gives you the vendor’s legal name, business type, address and taxpayer identification number. You use it to file Form 1099-NEC for vendors you paid at or above the IRS reporting threshold during the year. The IRS instructions set the current threshold, so check them each January. If a vendor won’t give you a W-9, backup withholding rules can apply.

An example

A new handyman finishes his first job before anyone asked for paperwork. In January the manager needs his taxpayer number for a 1099 and spends a week chasing it. With the W-9 requested in the welcome email, the form would have been on file before the first job.

Good habits

• Ask for the W-9 before the first job is offered
• Check that the name matches the invoice and the insurance certificate
• Keep it with the vendor’s record, not in an email thread
• Ask for a new one when the vendor’s business name or address changes

How Now Ours handles it

Which vendors are on your list, and what they must send first, stays your decision. The vendor onboarding checklist lists what to collect. This is general information, not tax advice.