Tax ID question

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A local business owner had a delivery truck back over a handrail. He asked me for a quote on repairing the rail. The delivery truck's insurance is supposed to pay to replace the rail. I gave him a quote and the insurance company called me to fill out a W9. I don't have a tax ID number for a business (yet) since I'm just doing work on the side. How does one handle a situation like this?GraysOrnamentalIron.com
Reply:You can get an EID number right now on-line :   http://www.irs.gov/Businesses/Small-...D-Numbers-EINsBut you really should look at the form and figure out what information you are going to enter.   If you have a tax person or service do your taxes, you should consult with them.If you use TurboTax, get the software and do a mock run-through as if you already had an EID and business and see what kind of questions it asks.  It really is a good education on how some of this works.It will also show you why so many of us are content with just being an employee and collecting a pay-check versus having one of the hardest careers there is (business owner).Last edited by bead-boy; 03-03-2015 at 01:29 PM.Century buzzbox that I learned on 40+ years ago (was Dad's)Crappy Century 110volt mig 70 amp pigeon pooper.Lincoln Idealarc TIG-300
Reply:I believe for a sole proprietor you can use you SS# as your tax ID.Miller Multimatic 255
Reply:Originally Posted by Louie1961I believe for a sole proprietor you can use you SS# as your tax ID.
Reply:Originally Posted by AlabassA local business owner had a delivery truck back over a handrail. He asked me for a quote on repairing the rail. The delivery truck's insurance is supposed to pay to replace the rail. I gave him a quote and the insurance company called me to fill out a W9. I don't have a tax ID number for a business (yet) since I'm just doing work on the side. How does one handle a situation like this?
Reply:With all due respect and positive intensions One need s to make sure he is insured and has proper permits to protect himself from getting into trouble from being uninformed. Good luck with your project.
Reply:As stated ... sole proprietor SSN # ... Insurance, Incorporation, LLC's whatever the case maybe are also important ... My insurance guy told me the following. "In the event of a major claim the attorneys first question is whats the insured's limit. I carry the $1million liability rider and Have an LLC ... HOWEVER can we really be protected? I would like to think so ... laws seem to change daily and attorneys love a good argument.Located In SE OklahomaLincoln Mig 135Hobart Ironman 230 Mig5x10 CNC Table with DTHC & FTHypertherm PM65 on the tableMiller Bobcatwww.caneyagequipment.com
Reply:You can fill out the W-9 using your S.S. # instead of an E.I.N........ I HOPE that they ask you for a "CERTIFCATE OF INSURANCE" before you do the work......Because without one YOU CAN'T DO THE WORK and get paid......So operate the correct/ proper way and purchase insurance .......( about 1 mill. G.L. should be about right) .....If you think you'll "slip by" think again cause they're gonna want a cert. of ins. BEFORE they cut a check......
Reply:Hey guys, just because I'm ignorant doesn't mean I'm trying to "slip by" with anything. The reason I asked the question in the first place was to find out what I needed to do. Thanks for all the suggestions. Keep'em coming. I have a call in to my insurance agent right now to see what I need.ThanksGraysOrnamentalIron.com
Reply:Originally Posted by AlabassHey guys, just because I'm ignorant doesn't mean I'm trying to "slip by" with anything. The reason I asked the question in the first place was to find out what I needed to do. Thanks for all the suggestions. Keep'em coming. I have a call in to my insurance agent right now to see what I need.Thanks
Reply:Originally Posted by blueriverAs stated ... sole proprietor SSN # ... Insurance, Incorporation, LLC's whatever the case maybe are also important ... My insurance guy told me the following. "In the event of a major claim the attorneys first question is whats the insured's limit. I carry the $1million liability rider and Have an LLC ... HOWEVER can we really be protected? I would like to think so ... laws seem to change daily and attorneys love a good argument.
Reply:You can deal with the owner on a 1-1 basis, but his insurance company may not like that, hence the W9. Get the insurance agent's name.  Send him a message and note his name, home and work addresses, SSN and bank account numbers, as well as that of his immediate family, parents and grandchildren.  Mention you only work for cash and sign it Vinnie or Guido."USMCPOP" First-born son: KIA  Iraq 1/26/05Syncrowave 250 w/ Coolmate 3Dialarc 250, Idealarc 250SP-175 +Firepower TIG 160S (gave the TA 161 STL to the son)Lincwelder AC180C (1952)Victor & Smith O/A torchesMiller spot welder
Reply:You are correct! I just checked with an accountant.
Reply:Originally Posted by SmoothOperator I HOPE that they ask you for a "CERTIFCATE OF INSURANCE" before you do the work......Because without one YOU CAN'T DO THE WORK and get paid........
Reply:Originally Posted by Louie1961Actually I am an accountant....
Reply:Originally Posted by Louie1961Actually I am an accountant....
Reply:yeah, but how many accountants, lawyers or politicians own a syncrowave...THAT has got to say something for my character.  Miller Multimatic 255
Reply:Alabass  I was just thinking about you.   Please take any and all advice and suggestions as just that.   Years ago I nearly go myself in some serious trouble by not having all my documentations in order.   That's been a long time ago but could have really cost me some very serious  money.  You are to be commended to ask the question that you did.  I tell a lot of folks just going into business or doing jobs on the side to use all your resource persons that you can and learn all you can about legal and accounting  and even engineering facts that may need to be successful.   I want to encourage you to be successful in your pursuit of your project.
Reply:Originally Posted by Louie1961I believe for a sole proprietor you can use you SS# as your tax ID.
Reply:AlabassYour inquiry began with a W-9 and a tax number - then morphed to business liability insurance - imagine that?Those matters addressed, I have a business-model caveat for small/individual upstarts.Don't take on any work that involves 'third-party pays', ie. insurance companies, banks, landlords, you best friendsmother . . .If you accept this job - collect from the client - and lethim do the Song & Dance to collect the insurance funds.Require 50% upfront - the balance COD - and you maybehappy enough to weld another day.Opus.Last edited by OPUS FERRO; 03-03-2015 at 10:36 PM.Reason: s - es - 's - s' - ?
Reply:Originally Posted by SmoothOperatorYou can fill out the W-9 using your S.S. # instead of an E.I.N........ I HOPE that they ask you for a "CERTIFCATE OF INSURANCE" before you do the work......Because without one YOU CAN'T DO THE WORK and get paid......So operate the correct/ proper way and purchase insurance .......( about 1 mill. G.L. should be about right) .....If you think you'll "slip by" think again cause they're gonna want a cert. of ins. BEFORE they cut a check......
Reply:also in most states its illegal to contract any work valued greater than $500 without a contractors license. I believe Washington is the only state that doesn't require a state contractors licenseVantage 500's LN-25's, VI-400's, cobramatics, Miller migs, synch 350 LX, Powcon inverters, XMT's, 250 Ton Acurrpress 12' brake, 1/4" 10' Atlantic shear,Koikie plasma table W/ esab plasmas. marvel & hyd-mech saws, pirrana & metal muncher punches.
Reply:But has nothing to do w/ ins.    Ins isnt needed for a cont lic.    He may not be able to bid work over 500, but i dont see being w/o a cont lic a problem if hes contracted on an hourly rateLast edited by 123weld; 03-04-2015 at 12:26 AM.
Reply:You should find out the information from someone in your state. In my state I don't have to show any of the things that have been told to you on here. That is not saying that you should not have Insurance and others required by each state. I have a Corp. in three states and none of them are the same. The only thing I ever have had to do is the W-9 and have never hade a problem collecting a check in forty years. I am not saying that they are not right in there state. Not all States require the same.
Reply:Originally Posted by 123weldWhat law, or on what legal grounds would they have not to pay him if he has no insurance??Originally Posted by 123weldWhat law, or on what legal grounds would they have not to pay him if he has no insurance??
Reply:Hourly rate has nothing to do with it, the law says $500  if any part of it adds up to more than $500 you need a license.  Hate to see him do the work only to get screwed when they as for his license number and general liability.   I have had  more than one customer want to be named and additional insured and require a certificate be cut which costs me money on a $250 dollar job.Vantage 500's LN-25's, VI-400's, cobramatics, Miller migs, synch 350 LX, Powcon inverters, XMT's, 250 Ton Acurrpress 12' brake, 1/4" 10' Atlantic shear,Koikie plasma table W/ esab plasmas. marvel & hyd-mech saws, pirrana & metal muncher punches.
Reply:you two are avoiding the question, and harping on other things he may have done wrong.    I'm not going to argue cont. lic laws, and hourly rate caps.
Reply:Only once in 15 years have I been asked for my License, insurance, etc documents. I have them if needed though.
Reply:Originally Posted by 123weldyou two are avoiding the question, and harping on other things he may have done wrong.    I'm not going to argue cont. lic laws, and hourly rate caps.
Reply:Originally Posted by Broccoli1Tax ID question was answered long ago   these are just other issues that come up when doing work. Nothing wrong with information.
Reply:Your on the right track..... Good luck in your endeavors, and may you prosper in them $$$$$$$$$$$$$.......
Reply:I made 30% of my income as an independent contractor last year. I have have never had insurance, and I have never had a problem. Lots of 1099misc, w-9, in multiple states. I don't even have a business  , licence or number. My CPA has never said any of that is required for tax purposes. I have been done work this way at several large plants, a college, and a government building.  Its a free economy, don't be scared to participate.Constant Current Weldor.
Reply:i like your way of doing business Davidbrown