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.
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.
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 ---
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.