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they asked for my tax i.d number

Discussion in 'Business Operations' started by bobbygedd, May 11, 2002.

  1. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    just billed a commercial acount for the first time, and they would not issue a check until i gave them my tax i.d. number. i gave it to them without asking why, now im wondering y on earth they wanted it. anyone have a clue?
  2. Probably for 1099 - I think they need to 1099 any vendor they pay over $600 per year. (amount may have changed)
    BTW most don't do the 1099s
  3. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    Good for them I wish they ALL would :->
  4. DLCS

    DLCS LawnSite Platinum Member
    Posts: 4,378

    I'm sure they just wanted your tax i.d. , so they can 1099 you.
    I put mine tax i.d # on all my invoices that are going out to commercial accounts. Just keeps them from having to ask for it.

  5. dougaustreim

    dougaustreim LawnSite Senior Member
    Posts: 488

    Actually, by law if any payments are made to an unincorporated business or individual for more than $600 they have to issue a 1099. If they don't have a reporting number they are required to withold 20% for taxes.

    Most companies ask for the id whether you are incoporated or not, just to keep their records simpler.
    Doug Austreim
  6. 65hoss

    65hoss LawnSite Fanatic
    Posts: 6,360

    If your a sole proprietor, its your SSN.
  7. Brickman

    Brickman LawnSite Bronze Member
    Posts: 1,249

    I am sure it was for the 1099. I had a new commercial this week, same story. NO check until they get the info.
    As for being a sole proprieter it is only your SSN. That is ONLY if you don't have employees. If you get employees you HAVE to have a employer I D for tax purposes. Personally the less I give out my SSN the better off I will be. Even tho this year I am not planning on hiring, I will continue to use the employer I D for these matters.
  8. Another reason you'll be asked for your tax id # is your clients liabilty isurance. Why, I don't know, but some of my commercial accounts ask for that reason.
  9. SCL

    SCL LawnSite Senior Member
    Posts: 543

    We have builders ask for our tax # and proof of insurance frequently. Stay away from the SSN thing for reasons listed previously.
  10. heygrassman

    heygrassman LawnSite Senior Member
    Posts: 509

    As part of our commercial bid package, we include a completed IRS W-9 (www.irs.gov) . This is the form that most use to capture federal tax ID numbers and is a piece of cake to fill out. This allows them to set us up as a vendor without wasting time. This offsets the "we need to set you us as a vendor" then 2 months later a check finally comes our way.


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