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W9 for LLCs - Do I provide my SSN or EIN? - YouTube
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a company wants my social security
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number to contract for them do i provide
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it first off i'm not your attorney i am
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not your cpa i'm just providing
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uh generally available information that
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you can google anywhere i just happen to
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have years of experience kind of in this
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business and so i have learned all this
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stuff and i'm passing it along to you
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secondly if you get value out of this
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video please like and subscribe
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um
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it really helps us out thirdly go to
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betterlegal.com and buy an llc from us
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or if you have a friend
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uh get an llc or share an llc with them
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if you are a customer of ours or if you
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go to our referrals page um for slash
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referrals you can actually become an
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affiliate and if you share your
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affiliate link with someone else they
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get a hundred dollars off and you get a
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uh check back from us and everybody wins
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so we don't have to pay google hundreds
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of thousands of dollars a month to for
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ads and
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you get that money instead so win win
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win win
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now back to the question a company wants
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my social security number to contract
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for them do i provide it you can
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uh very common
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it's called a w-9
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uh so what they
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want you to fill out is this document
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from the irs and why do they need that
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document from you well
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every company so the company that is
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going to hire you as a contractor
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is
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um
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they need if they pay you more than 600
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in a
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fiscal year
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they need to
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report
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that they need to report to the irs that
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they paid you money
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so if they pay you 300 for a quick fix
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of something they don't need to report
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it but if they pay you 600 or more
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throughout the year then they need to
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file that w-9 with the irs and say hey
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we paid this person 600
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fyi and so that's going to be linked to
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your social security number so then
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if you
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don't report that 600 that you earned
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from that company the irs is going to
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know about it and so that's how they get
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you
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um
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so don't be
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uh kind of trying to skirt under the
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system because the irs will figure it
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out because if you don't tell them
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likely someone else did so fyi on that
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um so yeah that's the main reason you'd
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have to file a w or that's the main
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reason you have to provide a social
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security number but there is an
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alternative and that is our friend here
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the ein the employer identification
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number the
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worst named item in the history of all
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government
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items
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employer identification number well
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if
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hal here wants to work for abc tile for
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john at abc tile and
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john is like hey i need your w9 so fill
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this out and
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hal is like well i don't want to put my
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social security number on here
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you know
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um
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he can put his ein
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but when when hal goes to the irs and to
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file an ein he's like okay it's called
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an employer identification number
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that that's not what i need like i'm not
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an employer well maybe it's call that
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because the employer needs that
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identification number for you
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ultimately it's a tax id for the
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business and if you yourself are going
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to be a sole proprietor
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then
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you yourself can get an ein
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now uh it's generally not recommended to
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just be a sole proprietor unless you've
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got your own
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reasons if you're going to be doing you
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know a lot of business
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it's generally best to get an llc
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uh
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probably 95 of all businesses that are
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created nowadays at least through us are
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llc's and so you get an llc and then you
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get an ein attached to that llc and then
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you zip that through to uh to john
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so instead of being a sole proprietor
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and uh
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and sending in w9 with your social on it
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you instead this is kind of what it
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looks like you instead
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uh get an ein for your llc
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or get an ein for your sole
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proprietorship
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and then you get that w9
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with the ein number which also looks
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like a tax number it usually is two
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numbers and then a bunch of things so
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it's kind of like this it's like
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20-123456
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this is generally what an ein looks like
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um so yeah that's uh that's the answer
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to that question you can provide the
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social security number
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um on that but generally if you're an
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llc or sole proprietors doing a lot of
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business you don't want to be sharing
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your social security number everywhere
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that's just fact so
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again if you've got uh
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helpful
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if this video was helpful um please like
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subscribe uh go to our referrals page so
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you can uh go to betterlegal.com
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forward slash referrals
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and you can sign up to be
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an affiliate and you can tell other
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people to use us if you don't need us
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right now but you like me because i'm
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giving you the good information so again
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thanks for watching
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