Side Hustle Paperwork: W-9 Form and 1099-MISC Form

Your side hustle paperwork and IRS reporting documents include the IRS W-9 and 1099-MISC forms along with a collection of other things, such as a business name, bank account, and a Taxpayer ID number. Depending on the type of business and structure, other documents will be required along with an organized method of bookkeeping and accounting.

TIP: As your CPA firm, we’ll make sure your business is set up to allow you to make the most of your side hustle. Find out how a small business owner, who began with a great side hustle, got serious through dynamic tax management. We’ll help you start out right.

About your side hustle paperwork.

Lets say your side hustle business is website design and continued development, and you’re really good at it. You picked a great name, WOW Websites. We set your business up as an LLC that is taxed as a sole proprietorship. Your side hustle will receive a 1099-MISC form from each of your clients who paid you $600 or more during the tax year for your services.

TIP: Generally, the 1099-MISC form is issued to independent contractors, janitorial services, third-party accounts and any other workers paid for services who are not on the payroll. If you receive a 1099-MISC from a client who should not have filed one, we can handle that. The problem comes when you don’t receive one which you know you should have received. We can take care of that, too.

Difference between W-9 and 1099-MISC.

Earnings you receive from your clients are for services, NOT for physical products or wages, and these earnings of $600 or more per client must be reported to the IRS. Your client should request that you complete the W-9 Form which provides them with your TIN (Tax -payer Identification Number), mailing address and other information. This form gives them the correct information so that in early January, following the end of the tax year, they can send you and the IRS a 1099-MISC form reporting the total amount of money they paid WOW Websites for services rendered.

TIP: If a client doesn’t ask you to fill out a W9 but pays you for your services, you should wonder why. Ask us, this could be a potential problem.

TIP: If your mailing address changes during the year, it’s important that you advise all your clients of the change. These businesses will notify the IRS that you received money from them, but if they don’t have your current address, you may not receive your copy of the 1099-MISC in January, following the end of the tax year, for your tax filing purposes.

What’s the bottom line?

We establish and maintain a personal and business relationship with our clients. We know that Your BUSINESS is Your Life, and Your LIFE is your Business, and we take both seriously.

Schedule an appointment now. Let’s talk about your side hustle!

Contact Melanie Radcliff CPA, Inc.
Call 479.478.6831 or melanie@radcliffcpa.com

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