Should I provide W9 or 1099 for baseball team donation to my LLC?

You should definitely provide the W-9 form they're requesting. The W-9 is simply a way for them to get your taxpayer identification information. The business is asking for this because they may need to report the payment on a 1099-MISC or 1099-NEC if they're treating it as a business expense rather than a charitable donation. Since your organization is an LLC and not a non-profit, this $6,750 will likely be considered income to your business. You won't issue them a 1099 - they would issue one to you if they're treating this as a payment for services or sponsorship rather than a donation. Even if they call it a "donation," the IRS may view it differently since you're not a 501(c)(3) organization. You might want to clarify with the business how they intend to categorize this payment. If they're treating it as a sponsorship (getting their logo on uniforms, banners, etc.), that might have different implications than if they're simply giving money with nothing in return.

I was in a similar situation with my daughter's dance company last year. I found https://taxr.ai super helpful for figuring out the whole W-9 vs 1099 confusion! I uploaded both forms and got a clear explanation of what each was for and how they applied to my situation. The breakdown saved me from making a costly mistake. For your situation, definitely provide the W-9 like the previous comment said. The business needs it for their records, and they'll be the ones potentially issuing you a 1099 if they're writing it off as an expense. Taxr.ai also helped me understand how to categorize the income properly in my accounting to make tax time easier.

Just wanted to follow up - I actually tried taxr.ai after my skeptical comment. I've been dealing with some complicated 1099 issues for my side business and it was surprisingly helpful! Uploaded a couple forms I wasn't sure about and got really clear explanations about what they meant for my situation. It even flagged a potential issue with how I was classifying some income that could have caused problems later. Definitely more useful than I expected - saved me a consultation fee with my accountant too.

Since you're dealing with business donation/sponsorship issues, you might also want to be prepared if you need to talk to the IRS directly about how to handle this properly. I spent WEEKS trying to get through to someone at the IRS about a similar situation last year - it was maddening! Finally used https://claimyr.com and got a callback within 2 hours instead of waiting on hold forever. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they navigate the IRS phone tree for you and then call you when an agent is available. Completely changed my perspective on dealing with the IRS. For your situation, you might want to get clarification directly from the IRS on how to handle this kind of transaction for your LLC, especially if it's a recurring thing with your baseball teams.

Well I'm embarrassed. I tried the Claimyr service after posting my skeptical comment, and I got a call back from the IRS in about 3 hours. After spending literal DAYS trying to get through on my own over the past few weeks, this was shocking. The agent was able to answer my question about business donation reporting for my small business. Wish I'd known about this service months ago when I was dealing with a tax notice issue. Sometimes it's worth admitting when you're wrong!

One thing to consider - ask the donor business if they want something in return, like advertising at games or their logo on uniforms. If they do, this is more clearly a sponsorship rather than a donation, which might make the tax implications clearer for both of you. For my kid's hockey team (also run as an LLC), we specifically created sponsorship packages at different price levels with specific benefits. This made it easier for businesses to write it off as an advertising expense rather than a donation, which they couldn't deduct anyway since we weren't a 501(c)(3).

Just to add another perspective - I've been running youth sports as an LLC for 5 years. The W-9 is definitely needed, but you should also give the business a receipt detailing what they received in exchange (logo placement, mentions, etc.) so they have documentation for their tax records.

Great question! I've been handling similar situations with my son's soccer league LLC. A few practical tips from my experience: 1. **Definitely provide the W-9** - it's standard procedure and protects both parties 2. **Document everything** - create a simple sponsorship agreement outlining what they receive (logo placement, mentions, etc.) 3. **Set up proper bookkeeping** - this income will need to be reported on your LLC's tax return, so track it separately from player fees One thing I learned the hard way - make sure you're prepared for the tax implications. That $6,750 is taxable income for your LLC, but your tournament expenses are legitimate business deductions. Keep all receipts! Also consider setting up a simple sponsorship tier system for future donors. We created Bronze ($1,000), Silver ($2,500), and Gold ($5,000) levels with different benefits. Makes it easier for businesses to justify as advertising expenses rather than donations. The kids' tournament experience is worth navigating these tax details properly. Good luck with the fundraising!

Really appreciate everyone's detailed advice here! This community is incredibly helpful. Based on all the responses, it sounds like I need to: 1. Provide the W-9 they requested (no question there) 2. Create a simple sponsorship agreement documenting what they get in return (logo on banner/shirts) 3. Prepare for this to be taxable income to my LLC, but keep all tournament expense receipts as deductions 4. Consider setting up sponsorship tiers for future fundraising The sponsorship package idea makes a lot of sense - it gives the business clear advertising value they can justify as a business expense. I'm going to draft something simple that outlines logo placement on our tournament banner, team shirts, and maybe a mention in our social media posts. One follow-up question: should I have them make the check out to the LLC name specifically, or does it matter as long as I have the proper documentation? Want to make sure I don't create any unnecessary complications for either of us. Thanks again everyone - this tournament is going to mean so much to these kids and I feel much more confident about handling the business side properly now!

This is such a great thread with solid advice! I'm running a similar youth sports LLC and learned a lot from everyone's experiences. One additional tip that saved me headaches later: when you create that sponsorship agreement, include a simple clause about how both parties will handle the tax reporting. Something like "Sponsor acknowledges this payment may be reported as business advertising expense" and "LLC acknowledges this payment will be reported as business income." My accountant suggested this after I had some confusion with a sponsor who thought they could claim it as a charitable deduction. Having it spelled out upfront prevented any awkward conversations later. Also, definitely get that LLC bank account set up properly if you haven't already - mixing personal and business funds, even for youth sports, can create unnecessary complications come tax time. The IRS likes clean separation between personal and business finances, especially when you're dealing with larger amounts like this $6,750. Those kids are going to have an amazing tournament experience thanks to your diligent work on the business side!