U7 – W-9 Step by Step LLC & Setup
Well, hi everybody, this is John Jay, and I just want to go over a few items regarding the W nine EIN Certification, OK, this is what the W nine form is to certify the correctness of the EIN.
So, we’re getting an EIN for either your partnership, trust, or limited liability company. The sole purpose really is to open a bank account.
So, I would just want to make a comment about applying for the EIN.
It’s so easy just to apply for the EIN as a single member, LLC, when you’re using it for that purpose, and you’ll get the number.
Just make sure that when you get your approval letter, make sure that the name of the company has comma LLC after it or the name of your trust has the word trust in there.
So that way, it has the proper designation.
You don’t want the EIN assigned to just your company name without the comma LLC after that because it’ll just be considered a sole proprietorship and you certainly don’t want to do that.
So it’s a good idea to follow the instructions I send out with all these these filings and watch the example video, it’s really helpful and just keep in mind.
However, you get this EIN, assigned to your LLC. Just make sure that it ends up being assigned to the LLC, your company name, comma, LLC.
Now, what I did here, you can see the actual W nine form.
So I’m going to switch over, and we’re going to talk about the form W nine.
So the way I’ve found this is I just go to a search engine and I search on Form W nine PDF, and you can put the year 20, 20.
It just so happens that the latest version, as you know, has been revised October 2008 team what you’re going to run into is a long list of financial services accountants, attorneys, and whatever. They’re using, filling out this form as a lead generator.
And what they’ll tell you is, it’s a printable, fillable W nine form, and then what they’ll do is collect your data, and then, populate the form for you, and then send it to you, or sell it to you, Or try to sell you, upsell you on a service, OK.
So instead, what you want to do is search for form W nine and look down the list of all the when you put the PDF in there.
It kind of narrows it down but look down the list of all the form listings in your search engine and look for the one that’s at the IRS website. So, it’ll say something like, IRS dot gov, dash something. Eventually, it’ll say W nine, right?
So, click on that link, and it should just open up right away, and it’ll be six pages.
Alright? See, it’s six pages long only, the first page is what we’re going to file. The other pages are just instructions.
All right. So, you see here, I have, the way this works is when you find it on the internet, and you click the link, it’ll open up in your browser.
What you want to do is, over the top right now, I’ve already done this, so you’re not going to see it here, But at the top right, you’re going to download the form from the Internet, it’s going to open up a new window on your computer screen, and then you want to save it, OK.
You want to do a file, save as and put it in the same folder that you put your EIN approval letter, and by the way on your EIN approval letter, I always like the make the filename for that, the, the number.
So that’s kinda easy to find it so I put that PDF file in my folder for the LLC name and then likewise I’m going to put this W nine when I save it it’s going to go into the same folder with the LLC’s name, OK.
So what we do is here we come down to line one and just an all caps, a name of company com, LLC, it’s very important that you do that.
Then, remember, I saved this form to my computer.
So that way, as I’m typing, I’m going to update it and save it again, so that way, I don’t lose any data.
So, we’re just going to make the same name again, redundant, but that’s what they do. So, Name of company, LLC, right, Chama, LLC, that’s so important.
Once you’ve got those two filled out, we tab down, and, of course, we’re going to tell the IRS what kind of organization this is. It is not any of these.
It is a limited liability company, and let’s call it a partnership. OK?
So, we’re just going to put a P&L for partnership.
Um, let’s see, there’s nothing else that needs to be completed here, except the address you want to use, just to be consistent. You don’t have to do this, but I like to recommend it.
The address is same as you used.
For your EIN application, alright, just keep things simple, OK, don’t need to put anything in there.
City and state, obviously, same thing you did on your EIN application.
This doesn’t pertain to you. Do not ever put your SSN here.
Ever, Ever, ever, for what we’re doing.
You can just leave it blank, you’ll be fine, do put your EIN here. That is most important, OK?
So you put your EIN, just like it’s indicated, you can type it in there, then you’re just going to certify a couple of things.
one is, you’re saying, basically that when you’re saying, I hear what you’re saying is the LLC, It’s a US person, by the way.
Um, and so, you’re certifying, actually, the LLC is certifying that the EIN being disclosed here, is correct.
And you’re also certifying the LLC is certifying that it is not subject to backup withholding, and that’s a big issue. I’m not gonna get into it.
If you want to lookup what, that really means.
You will find very detailed explanation in Title 26 of the USC under Section 30, 406, OK?
It’s very detailed.
But anyways, we don’t care about that, so then you just come down here, signature of US. person. Now, again, your US. Person is your applicant. The applicant is your LLC, it’s not you, it’s not you individually, so you would sign your name, but you put a title next to it.
So it’d be Bill Smith, comma, authorized signatory, OK? You can do that for everybody. Everybody’s an authorized signatory. You can be more specific. You can say Bill Smith, comma, vice president.
You can say, Bill Smith, comma, managing Member, Bill Smith Karma, member, President, CEO, whatever you want to do, but put a title, whatever that is going to be. I always put authorize signatory, or I put Managing Member if you’re not sure.
Go look at your Certificate of Beneficial Interests.
Look at your, um, your Operating Agreement. It’ll tell you right there who the Managing Member is, OK? For a lot of you, I major Managing Member, the PMA, a private membership association, OK, it’s a trust.
Don’t tell the bank that, though.
So anyways, sign your name, Put your title, Authorized signatory. Definitely put the date.
And that’s it.
What I would do is, obviously, you’re not going to science on the computer like some of you do. I know that you know how to use the software, I don’t even know how to do that. I will just print it, sign it, and then scan it, OK?
I do it the old-fashioned way, so to speak.
Then I’ve got this on my folder That deals with the LLC I’m using. And if somebody asked me like an Exchange or somebody, I could just click on it and e-mail it to them right, It’s already done.
And that’s it. You don’t need all this information, but you’re welcome to read it.
If you’d just like to know all this stuff, that’s, you know, that’s all it’s for.
You verify the correctness of the EIN, and you verify that you certify that. It’s not your LLC is not subject to backup withholding. It does not create a tax liability for you at all.
Do not again.
Do not use an SSN error, OK.
Only use an EIN, just to pee.
Very sure that you understand that. All right, and that’s as simple as it is and yes, you want to do it, especially if you’re being asked. That way, there’s no question. You don’t want to get into a situation where a company is going to withhold 30% and then you gotta deal with the IRS.
It’s just a real nightmare in that situation.
So, yeah, That’s as simple as it is. I hope that helps, everyone.
Thanks a lot.