Filling Out the W-9 Form: A Quick Guide for Investors
⚠️ If you’re unsure which investing type applies to you, consult your CPA or legal advisor.
If you’re unsure how to complete the W-9 form, you’re not alone. This guide will walk you through it step by step.
What is a W-9 Form?
The W-9 is a form issued by the IRS that provides your Taxpayer Identification Number (TIN) to a business (or fund) so they can report payments made to you. It’s primarily used for tax reporting and may be required when:
- You invest in a syndication or customizable fund
- You receive distributions or returns
- You are issued a 1099 at the end of the year
Why do I need to fill it out?
This is a common question. Non-U.S. persons are subject to a 30% backup withholding tax. By filling out the W-9 form, you’re confirming your information, ensuring that the fund manager doesn’t need to withhold taxes on your behalf.
Absolutely. Here’s a straightforward educational article for fund managers or investors on how to fill out a W-9 for different investing types (e.g., Individual, LLC, Trust, etc.).
🧾Based on Investing Type
1. Individual or Sole Proprietor
Use this if: You’re investing using your personal name and Social Security Number (SSN).
| W-9 Line | What to Enter |
|---|---|
| Line 1 | Your full legal name |
| Line 2 | Leave blank or enter “N/A” |
| Line 3 | Check “Individual/sole proprietor or single-member LLC” |
| Line 4 | Usually leave blank |
| Line 5 & 6 | Your mailing address |
| Part I | Your SSN |
| Part II | Sign and date |
2. Single-Member LLC
Use this if: Your LLC has one owner and is disregarded for tax purposes (default IRS treatment).
| W-9 Line | What to Enter |
|---|---|
| Line 1 | Your personal name (not the LLC name) |
| Line 2 | LLC name |
| Line 3 | Check “Individual/sole proprietor or single-member LLC” |
| Line 4 | Leave blank or write “Disregarded Entity” |
| Line 5 & 6 | Business or mailing address |
| Part I | Your SSN or LLC’s EIN if one is used |
| Part II | Sign and date |
3. Multi-Member LLC or Partnership
Use this if: Your LLC has more than one owner or is taxed as a partnership.
| W-9 Line | What to Enter |
|---|---|
| Line 1 | Legal name of the partnership or LLC |
| Line 2 | DBA or additional name if applicable |
| Line 3 | Check “Partnership” or “Limited Liability Company” and write “P” in the classification box |
| Line 4 | Optional – note any exemptions |
| Line 5 & 6 | Mailing address of the entity |
| Part I | The LLC or partnership’s EIN |
| Part II | Authorized signer’s signature and date |
4. Trust
Use this if: You are investing through a living trust or irrevocable trust.
| W-9 Line | What to Enter |
|---|---|
| Line 1 | |
| → For revocable grantor trusts: Enter the grantor’s name (e.g., Harry Pot) | |
| → For irrevocable trusts: Enter the name of the trust (e.g., The Pot Living Trust) | |
| Line 2 | Name of the trust (optional for grantor trusts, but recommended for clarity) |
| Line 3 | Check “Trust/estate” |
| Line 4 | Optional – exemptions may apply |
| Lines 5 & 6 | Trust’s mailing address |
| Part I (TIN) | |
| → For revocable grantor trusts: Use the SSN of the grantor | |
| → For irrevocable trusts: Use the EIN of the trust | |
| Part II | Trustee’s signature and date |
How to Know Which Applies:
- If it’s a revocable trust and the grantor is still alive, it’s a grantor trust — the IRS treats the grantor as the owner, and the SSN goes on the W-9.
- If it’s irrevocable or someone other than the grantor is managing the trust, use the trust’s EIN and list the trust as the entity.
Why It Matters:
The W-9 must match how the IRS expects to see ownership reported. Using the wrong TIN (SSN vs. EIN) can lead to K-1 delays or rejection at tax time.
5. Corporation or S-Corp
Use this if: You’re investing through a corporation.
| W-9 Line | What to Enter |
|---|---|
| Line 1 | Name of the corporation |
| Line 2 | DBA if applicable |
| Line 3 | Check “C Corporation” or “S Corporation” |
| Line 4 | Optional |
| Line 5 & 6 | Corporation address |
| Part I | Corporation’s EIN |
| Part II | Authorized person’s signature and date |
⚠️ Common Mistakes to Avoid
- Using the wrong name or TIN – Make sure the name and tax ID match IRS records.
- Using SSN for an entity – If investing through an LLC, trust, or corporation, you generally need an EIN.
- Leaving it unsigned – A W-9 without a signature is invalid.
📌 Final Tips
- Keep a copy of your W-9 for your records.
- You only need to fill it out once per investing entity unless your information changes.
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