How and where to get your compliance documents for your business:
To be eligible to perform work and contract with customers, you are required to have the following documents:
The W9 tax form is required by companies that use independent contractors like you. Submitting this form to your customers lets them know you are an independent contractor (not an employee) and will withhold and file your taxes. Your customer will send you a 1099 tax form around January containing the total amount they paid you. You must provide this 1099 form to your tax professional to complete your taxes.
This form will contain your TIN (taxpayer ID number). If a customer asks you for your TIN number, you can find it on this form.
In the USA, you can download the form from the IRS website.
More info on IRS tax form W9 – https://www.irs.gov/forms-pubs/about-form-w-9
Direct Link to W9 – https://www.irs.gov/pub/irs-pdf/fw9.pdf
Links to W9 forms and instructions in English & Spanish
(Doing Business As)
Also known as a “Fictitious Business Name,” the DBA filed with your county will allow a person to do business under a name other than their own. So, to name your business, you will need to get a DBA filed with your county recorder’s office unless you want the business to have your name. It is best to create a unique name for your business and not use your name. A DBA filing is required to open your business bank account.
You can search your local county website for “filing a fictitious business name” or locate the County Recorder’s Office. Forms will be located there, and fees are generally around $50. The forms will be published on your county’s website.
A business license is required by any city where you perform services. For the purpose of the ServiceActivator platform, you need to upload one business license. A business license can be obtained easily from a City office. Search your local city’s administrative office or search for a city business license on Google for a list of locations near you to get one.
Fees: A business license can range in price from city to city and from $25 to $250, depending on the work you do in that city. Shopping around is recommended if you are starting and funds are limited.
Having insurance is essential to protect you and your customers. Since you are in business, standard auto insurance will not cover your vehicle anymore. You must contact a commercial insurance broker to obtain your commercial auto, general liability, and worker’s compensation insurance. Working with a commercial broker is best because they will be your advocate. A broker can shop for several companies to find you the best price. If you have problems, they will work on your behalf to assist you. Many brokers will send out your insurance certificates to customers, which saves you time.
Keep in mind that down payments will be required to start your insurance. Be aware and ask if the quoted price is for 6 months or the entire year of coverage. The insurance company pays commercial brokers, and there are generally no direct fees you pay to them.
This will require you to give the year, make, model, and VIN# of the vehicle they are covering. Our platform requires that you obtain a $1,000,000 combined single limit (CSL) liability coverage limit with Additional insured status added if needed.
This insurance will cover you or your customer if something happens due to the work you perform. For example, if someone trips in the parking lot of a property you service, you (and many others) may be named in a lawsuit. Your General Liability Insurance will pay for an attorney to defend you. If a judgment is made and money is to be paid, the insurance will pay up to the limit you purchase. This will allow you to continue working without the fear of losing your business and assets in the event of a lawsuit. There are no guarantees, but the chances are high that your business will eventually be involved in a lawsuit. Our platform requires a minimum of $1,000,000 per occurrence limit with Additional insured status added if needed. Some customers may require a higher limit depending on the risk involved in your services, and your limit can be increased by contacting your Commercial Insurance Broker. But remember that your premium is based on your coverage, so be sure the job is worth your increased premium. Some customers are willing to make exceptions if you ask.
This is a “No Fault” insurance for your employees. This insurance helps pay for any injuries your employees suffer while on the job. Many states, like California, require any business that employs workers to carry Workers’ Compensation Insurance. A worker/employee is classified as anyone who does not hold ownership of the company or corporation. It doesn’t matter who they are or how they are related; if they are not listed in your partnership documents, they are employees, and you must carry Workers Comp in most states.
Even though your state may not require an owner-operator to carry Worker’s Compensation insurance, many of your customers may require that you carry a minimum policy in order to contract work.
If you have employees, purchasing Workers’ Compensation Insurance is in your best interest. You work hard in your business and don’t want to lose everything if an injured employee sues you.
Read more about your state requirements here
Fees will depend on your payroll amount, classification codes (based on service type and risk), and your claims history (injuries reported). Having a safety program in place and talking to your employees about safety regularly can save you thousands of dollars each year.
