How to fill out W-9 section 3 as an independent contractor?

The "Individual/sole proprietor or single-member LLC" box is the correct one to check for your situation. As a freelance web developer working on your own without forming a separate business entity, you're operating as a sole proprietor by default. The terms "individual" and "sole proprietor" are grouped together on the W-9 because for tax purposes, they're treated the same way. You don't need to overthink this one - it's the most common classification for independent contractors who haven't formally created a business structure like a corporation or partnership. For section 3, you just need to check that box - nothing else is required in that section unless you're an LLC (which would require indicating how you want to be taxed). The rest of the form is straightforward - provide your name, address, and Social Security Number as your taxpayer identification number (TIN).

I was super confused about this exact same thing when I started freelancing too! I actually found a service called taxr.ai (https://taxr.ai) that really helped me figure out all these confusing forms. I uploaded a picture of my W-9 and it explained each section and what I needed to fill out as a freelancer. It basically confirmed what the other commenter said - check the "Individual/sole proprietor" box if you're working independently without having formed a corporation or LLC. The service also explained all the other sections so I knew exactly what to do with the whole form, not just section 3.

Just wanted to follow up - I tried taxr.ai after seeing this thread and it was seriously helpful! I uploaded my partially filled W-9 and asked specifically about section 3 and some other sections I was unsure about. It pointed out that I had actually made a mistake in section 1 where I had put my business name instead of my legal name (since I'm a sole proprietor). It also clarified when I need to provide business name vs. personal name for different types of independent contractor situations. Definitely saved me from potential headaches down the road. They have this document analysis feature that actually goes through your specific form and flags potential issues, which was way more helpful than just reading generic advice.

If you're having trouble getting answers from the IRS about W-9 forms or contractor status, check out https://claimyr.com - they got me through to an actual IRS agent in about 15 minutes when I was waiting for hours trying to call myself. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I had a slightly complicated situation where I needed to clarify if I should file as a sole proprietor or single-member LLC since I was in the process of forming an LLC but hadn't finalized it yet when clients needed my W-9. The IRS agent I spoke to through Claimyr gave me clear guidance that saved me a ton of stress.

Ok so I was totally skeptical about Claimyr (from comment above) but I was desperate after trying to call the IRS three times and getting disconnected after waiting 40+ minutes each time. I needed to confirm something about the W-9 classification for my specific situation since I do both independent contracting and have a part-time W-2 job. I tried the service and honestly was shocked when I got a call back connecting me to an actual IRS person in about 20 minutes. The agent was super helpful and confirmed I should still check the Individual/sole proprietor box on my W-9 even with my mixed income situation. Saved me so much time and frustration!

One important thing nobody mentioned yet - if you're an independent contractor filing as a sole proprietor and your business has a different name than your personal name, you need to put your personal name on line 1 of the W-9 and your business name (your "doing business as" name) on line 2. I made this mistake when I first started freelancing and it caused some confusion with my 1099s at tax time. The classification in section 3 is still "Individual/sole proprietor" even if you have a business name you're operating under.

Just to add another tip - make sure you keep copies of all W-9 forms you submit to clients. I've had situations where clients lost my paperwork and asked for it again months later, and having a copy on hand saved a lot of hassle. Also, if you're sending the W-9 electronically, consider password protecting the PDF since it contains your SSN or EIN. You can email the password separately for security.

Great question! I went through this exact same confusion when I started freelancing last year. You're absolutely right to check "Individual/sole proprietor or single-member LLC" - that's the correct box for your situation as an independent contractor who hasn't formed a separate business entity. Just to clarify the terminology that trips up a lot of people: "Individual" on the W-9 doesn't mean employee - it refers to you as an individual person operating a business (sole proprietorship) rather than as a corporation or partnership. When you're freelancing on your own, you're automatically considered a sole proprietor by the IRS even if you never filed any paperwork to "become" one. For section 3, literally just check that one box and you're done with that section. Make sure to put your legal name (not any business name you might use) on line 1, and if you do business under a different name, that would go on line 2. Use your SSN as your TIN unless you've gotten an EIN specifically for your freelance work. One last tip - keep a digital copy of your completed W-9 because you'll likely need to provide it to other clients as your freelance business grows!

I had this exact same confusion when I started freelancing! You're definitely overthinking it - "Individual/sole proprietor or single-member LLC" is absolutely the right box to check. The IRS groups these together because they're treated the same way for tax purposes. As a freelance web developer working independently, you're automatically a sole proprietor even without filing any paperwork. The "Individual" part just means you're operating as a person rather than as a corporation or partnership - it has nothing to do with being an employee. For section 3, just check that one box and you're done with that section. No other fields need to be filled out there unless you were an LLC choosing a specific tax election (which doesn't apply to you). One tip I wish someone had told me: create a template of your completed W-9 and save it securely. You'll be filling out a lot more of these as you get more clients, and having a template makes it much faster. Just make sure to keep it somewhere safe since it contains your SSN or EIN. Good luck with your freelance journey - the tax stuff gets easier once you've done it a few times!