I run a small LLC doing contract work. Invoiced a new client and they're holding payment until I send a W-9. Is this normal? I don't have employees and I'm not sure what they need it for.
Tax
Why would a company ask my llc for a w-9 before paying an invoice?
Yes, it's normal. They need your EIN or SSN to report payments to the IRS if they pay you $600 or more in a year. It's a standard form for any contractor.
Pretty standard. Just fill out the W-9 with your LLC's info and send it back.
They're required to collect it for tax reporting. If you're a single-member LLC, you likely use your SSN unless you have an EIN.
Not Not unusual at all. Most companies won't cut a check without one. If you don't provide it, they might withhold taxes or delay payment.
I had a client ask for one last month. It's just paperwork for tHeir accounting. Shouldn't affect you beyond that.
It's also for their records to show they didn't pay an employee. Independent contractor vs employee stuff. Just give it to them.
If you're an LLC, you can use your EIN. If you don't have one, you can use your SSN. Either way, fill it out and send it.
Some companies are stricter than others. I've had to provide W-9s for years. Keeps their books clean.
Could also be a vendor setup thing. They might not even be required to file a 1099, but they still collect it.
Just make sure you fill it out correctly. Wrong EIN or SSN can cause headaches later. But yeah, nothing to worry about.
Did you already send the invoice? They might just be holding it in their system until the W-9 is on file. Send it and follow up.