Guide · Tax forms
W-9 vs 1099-NEC
Clients ask for a W-9 before they pay and send a 1099-NEC after the year ends. They are different forms with different jobs, and neither belongs on your invoice.
The short version
| Form | Who fills it | What it does |
|---|---|---|
| W-9 | You, for the client | Gives the client your legal name and taxpayer identification number |
| 1099-NEC | The client, for the IRS | Reports nonemployee compensation paid to you in the year |
| Invoice | You, for the client | Asks for payment for the work; it is not a tax form |
When a client asks for a W-9
Before they pay you, or before they set you up as a vendor. You provide your legal name, business name if different, address and taxpayer identification number, and sign it. The client keeps it; you do not send it to the IRS.
SSN or EIN?
A sole proprietor can use an SSN or an EIN. An LLC or corporation uses its EIN. If you do not want to give every client your SSN, an EIN is the usual alternative — it is free from the IRS and takes minutes to apply for online. Check the box for your entity type carefully; the wrong box causes backup withholding.
Who gets a 1099-NEC
A business that pays an independent contractor $600 or more in a year generally files a 1099-NEC. Payments to corporations are often exempt, with exceptions. Payments made through a payment card or a third-party network may be reported on a 1099-K instead.
Deadlines
The client generally files 1099-NEC forms with the IRS by January 31 and gives you a copy by the same date. If you have not received one by early February, ask the client — do not assume the income is not reportable. You report your income whether or not a 1099 arrives.
What to do if a 1099 is wrong
Contact the payer first and ask for a corrected form. Keep your own records of what was paid and when. If the payer will not correct it, you can still report the correct amount on your return and explain the difference if asked.
What if you are an LLC?
An LLC can use its EIN, and a single-member LLC that is disregarded for tax purposes may still use the owner’s SSN. The form asks for the tax classification, not just the legal name. If you are unsure which box applies, ask an accountant before you sign; the client will use the form to decide whether to issue a 1099-NEC.
Do not put your SSN on the invoice
An invoice needs your business name and contact details, not your Social Security number. The W-9 is the document for taxpayer information. Putting an SSN on every invoice increases the chance it is seen by people who do not need it.
This is general information, not tax advice. Thresholds and exceptions depend on the payer and the payment method; check with an accountant for your situation. For the invoice itself, see how to write an invoice.
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