Why did my contracted business send me a w9 for my new staffing company?
I just started a staffing firm in an llc and it is taking off pretty quickly. Im trying to understand how to setup my payroll efficiently for taxes. I sent my ww-9 to the warehouse company I currently have contracted agents at, they also sent me back one in return for their info? Why would I need their w-9? I thought I would only need 1099's for the agents as income as I pay them, why is the company Im sending agents to sending me their w9?
- JayLv 61 year ago
The 1099's are the things you send out at the end of the year...the W9 is something the other company needs in order to give you business.
And if you did not know what...you need a CPA last week or you will be in tax prison.
- 1 year ago
For God's sake, hire someone who knows what they're doing! You have no idea what an LLC is or how it works. You have no idea what employees are and how you need to administer payroll reports and file appropriate federal and state returns. You're going to look like a fool with companies you do business with because they understand the payroll rules and they're going to quickly realize you have absolutely no idea what you're doing.
By the way, "contracted business" has absolutely no meaning. Any business relationship is contracted. You don't know what you're doing. Find the barber or bartender who told you to form an LLC and slap them.
- A HunchLv 71 year ago
The company you are contracted with is paying YOU. They will send YOU a 1099 if they are required to.
They are your customer. Unless you are paying THEM, you will not send them any tax documents.
The people who are working at their facility from your firm, are your EMPLOYEES.
You need to withhold taxes and pay payroll taxes for these individuals. You need to have workers comp insurance unless you are in Texas. In Texas, your company is responsible for workplace injuries but you don't need to have wc insurance.
I hope that what you are telling us is not true (yet) because you have no idea what you are doing.
- EvaLv 71 year ago
If you have a staffing firm and you are sending workers to a company you have a contract with, those workers are employees, not independent contractors. You cannot pay them on a 1099. They must be paid on a W2 and you must withhold taxes from them. The company would need a W9 from your LLC to pay you. I'm not sure why they thought you would need their W9 as you should not be writing any checks to them.
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- 1 year ago
its the law