How do I pay and 1099 report when the payee completes the W-9 with their name, business name, and social security number?
Question
When a W-9 comes in and it has a persons name on line 1 with their social security number on it but the W-9 has a business name on line 2 and the invoice we recieve is for the buisness name, who should we make the check out to? The business name or the individual? We are purchasing items from them so the company is not providing us a service.
Answer
Validating Forms W-9 when they involve sole proprietor's or single member LLC's easily ranks as one of the more complicated compliance tasks you face. However, you must get it right. Here is what you need to know to do exactly that (and the answers to your questions).