Prior to filling in the details in part three of the paper, it is crucial to find out what type of registration of the business has. There is prime difference among provided options:
- Individual proprietor;
- S Corporation;
- Trust or Estate;
- Limited liability company;
Taxpayers need to find out what is the registered status of the business. It can be checked with the employer first because an ordinary individual may not understand W9 tax form meaning of legal terms provided in the list. In reality it is all very simple but in order not to make a mistake, checking out in advance will be the most appropriate way of doing things. People may also ask a tax advisor or attorney.
Other things to pay attention to filling out Part 3
A person should also consider several other aspects and pay attention to the fact that if it is unknown what business it sis dealt with, it is then most likely to be a sole proprietor. It characterizes as:
- Operates under its owner’s social security number;
- No registration with state or any other business;
- It is taxed as sole-proprietor;
- Usually has one direct owner is registered;
Working the sole-proprietor or being under contract with such entrepreneur is known in advance and has more instances than working for a limited company or a corporation. Employee’s contract also states the legal status of the employer. In the digital form people will also be obliged to write tax classification by providing appropriate letter. It also can be found from advisor or directly from the employer.