Question

How to pay & report income for a "guy" without a business entity legally?

We are a sole mbr LLC. We hired a roofing contractor to sub on a project. Now that we are being invoiced for the completed work, I find out that his insurance is only "applied for" (I know, we always try to get the COI up front, but didn't here) and he's just a guy, not a business entity of any kind. The way I understand it, if we are paying more than $600 to someone that does work for us, we need to have their TIN for reporting purposes and send them a 1099-MISC. My question is, if he just sends me a filled out W9 with his SS # in his name (not a DBA or anything) is that all I need? (well, besides the actual proof of insurance of course)

8 months ago - 2 answers

Best Answer

Chosen by Asker

Yep, that's what you need. He should submit a W9 with his TIN. Then at the end of the year, you complete a 1099-Misc to report the amount you paid him.

8 months ago

Other Answers

The W9 with the SSN/TIN is all you need. Does not matter if it is an individual or business name. As long as you properly report payments you have complied legally.

by Barkley - 8 months ago