W-9 Form Classification
When filling out the W-9 section on Zenefits, you'll have to select a tax classification from the following options:
- Individual/sole proprietor or single-member LLC: Someone who owns an unincorporated business by themselves. If you are the sole member of a domestic limited liability company (LLC), you are not a sole proprietor if you elect to treat the LLC as a corporation.
- C Corporation: Conducts business, realizes net income or loss, pays taxes and distributes profits to shareholders. Recognized as a separate taxpaying entity for federal income purposes.
- S Corporation: Elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes.
- Partnership: Relationship between two or more persons who join to carry on a trade or business. Must file an annual information return to report income, etc, from its operations, but does not pay income tax.
- Trust/estate: If the entity or person is a trust or estate.
- Limited liability company (C= C Corp; S= S Corp; P=Partnership): Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC’ s owner’s tax return (a disregarded entity).
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