How to fill out a W-9 as a sole proprietor?

Request for Taxpayer Identification Number and Certification requires such data as legal name, TIN, entity type and address. This guide will help you complete blank W-9 2020 as a sole proprietor and explain what kind of information to use to fill each field correctly.

Does a sole proprietor need a W-9?

You’ll be asked to complete the document in several cases:

  1. You’ve received $600 or more for your services during the tax year.
  2. You’ve inherited property that might be taxable.
  3. You were paid dividends, royalties etc.
  4. You open a new bank account.
  5. You rent property that requires a security deposit.

If you’re not sure whether you have to use the paper, ask the requester why the form is needed.

How to complete the blank in right way?

You’ll have to enter such data:

  • legal name and business name;
  • entity type;
  • exemption codes;
  • full address;
  • TIN.

Sole proprietors have specific instructions only on items 1, 3 and 5. First, you should use your own individual name on line 1 as it’s shown in 1040. On line 3 just check the appropriate box. Sole proprietors usually use SSN in TIN section, but they may also enter EIN if they have it. Still, Social Security Number is more preferable.

When all the items are filled, sign the paper and put a current date. You can download free PDF and complete the document online with e-signature right on the website.