Required Docs

SuzannaK

New Member
What are the required legal documents that I am required to give to a client or that a client is required to give to me? I guess this might depend on your legal structure. I am staring as a sole proprietor.
 

LeeDrozak

Community Leader
First and foremost you will want a signed contract. Second, if you are in the US you will need to provide your client with a W-9 for tax reporting purposes.

Also, be sure to get a EIN from the IRS so that you do not have to give anyone your SSN.
 

Tess

Administrator
Staff member
Just wanted to add that if a client pays you more than $600 in a year they should send you a 1099 that will stipulate how much they paid you total. The client also sends one copy to the IRS to make a record of the expenditure.
 

msloehn

New Member
Thanks for the information Tess & Lee - I wasn't sure if I should include the 1099 with my welcome packette or send it later - I will include it when I get the signed contract now. - Great information and I didn't know the limit was $600 --- :)
 

Kristi

New Member
So we need to send a 1099 and a W-9? I have to work on getting my EIN ASAP! I have just been using my social security. Thanks!
 

brassring

New Member
Kristi,
You do not need to send a 1099 to the client, just the W-9. The client is required to send you a 1099 at the end of the year (if they paid you more than $600). And yes, protect yourself by getting an EIN - very easy to do online. This will protect you from identity theft if your social security number gets into the wrong hands.
 

Kristi

New Member
Thank you for the clarification Cynthia! I just received my EIN number this morning. I really appreciate your help.
 
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