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  1. #1
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    Affiliate network requires w9 - quick question, please help
    A long time ago I used to be affiliated with this network. Since then I've remained in the industry, but at different companies. I recently decided to start a few sites up, as I'm about to retire. I joined this affiliate network, but really don't want my name involved or associated with them. i.e. account info.

    I have friend who has agreed to be an employee (real part time). He isn't listed on my LLC as a partner, but I'd like to use his name on the account info for this network.

    Is it legal to have his name listed on the w9, when all the checks, will be going to my LLC, as I am the sole MBR?

    Do I have to use my name for this particular instance?

  2. #2
    The Seal of Aproval rematt's Avatar
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    Quote Originally Posted by dudes4real View Post
    Is it legal to have his name listed on the w9, when all the checks, will be going to my LLC, as I am the sole MBR?
    Ahh, trust is a beautiful thing. Let's see; you would have to trust that your friend will be honest enough to turn the checks from the network over to you and your friend will need to trust that you'll cover his tax liability in case you actually make some money that he needs to turn over to you. And you both will need to trust someone whose ethics are such that they are willing to mislead a network and the IRS.

    I see no problem here.

    -rematt
    "I know that you believe you understand what you think I said, but I'm not sure you realize that what you heard is not what I meant." - Richard Nixon

  3. #3
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    wouldn't the company be making the money and not him? the check should be cut out to the LLC. The form just needs a persons name on it.

  4. #4
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    Quote Originally Posted by dudes4real View Post
    wouldn't the company be making the money and not him? the check should be cut out to the LLC. The form just needs a persons name on it.
    Speak to the IRS, ask for professional advice.

  5. #5
    Outsourced Program Manager e-Gazer's Avatar
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    I have to wonder why you'd want to associate with any brand you don't feel comfortable having your own name linked to, personally, when you're comfortable having your friend's name associated...

    That said, depending on the company, they would likely cut the check to the LLC and not to the person's name on the account - it all depends on what information you provide when you register.

    If you register with the program as an individual vs. a company the check would typically be made out to the individual on the account. Most times you can register as a business though, as well as provide a contact name (i.e. your friend/employee) - in which case the check would normally be made out to the business name not the contact name.
    Last edited by e-Gazer; October 21st, 2010 at 01:44 PM.

  6. #6
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    The form needs a name AND a social security or FIN:

    1) If it is his id number, he will be shown as receiving taxable income from the network;

    2) If it is his name and your id, the discrepancy will raise red flags with the IRS.

    3) If it is all in his name and you include the income on your tax return and he does not, three things can happen especially if there is more than a minimal amount of income involved -
    a) IRS will inquire why you are reporting income when there is no 1099 from the vendor (network) (unless your business entity is a corporation);
    b) If he does not report the income on his return but there is a 1099 from the vendor (network) showing this income, he can be in big trouble; and
    c) In case a) the IRS will likely contact the vendor (network) and inquire why no 1099 was sent to this person. This could cause them problems (possibly even a fine) and they will likely terminate you for this.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
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  7. #7
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    e-gazer - It was a messy relationship, but I like the advertisers. The account is registered under the LLC. All checks are under the LLC name. They just require w9 info


    Affiliate Hound: The plan would be to use his name and business name (LLC), EIN for the w9.



    So If I were to generate over 600 per year for that network, will they send me (my friend) a 1099 to fill out and then send to IRS (cpa will do that).?


    I'm a little confused because it doesn't seem like a big deal. The network will be cutting the check for the company, not my friend. So technically, shouldn't the earnings be documented under the LLC's name?


    I clearly don't want to get my friend or myself in trouble. I just want to do the right thing, hence this thread. Thanks for all your comments. More thoughts is appreciated.

  8. #8
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    Quote Originally Posted by dudes4real View Post
    e-gazer - It was a messy relationship, but I like the advertisers. The account is registered under the LLC. All checks are under the LLC name. They just require w9 info


    Affiliate Hound: The plan would be to use his name and business name (LLC), EIN for the w9.



    So If I were to generate over 600 per year for that network, will they send me (my friend) a 1099 to fill out and then send to IRS (cpa will do that).?


    I'm a little confused because it doesn't seem like a big deal. The network will be cutting the check for the company, not my friend. So technically, shouldn't the earnings be documented under the LLC's name?


    I clearly don't want to get my friend or myself in trouble. I just want to do the right thing, hence this thread. Thanks for all your comments. More thoughts is appreciated.
    It doesn't make any sense. Why would you not want your name associated with the network? If they have wronged you, then you shouldn't be working with them.

  9. #9
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    "I just want to do the right thing"

    Talk to an accountant.

  10. #10
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Quote Originally Posted by dudes4real View Post
    Affiliate Hound: The plan would be to use his name and business name (LLC), EIN for the w9.

    So If I were to generate over 600 per year for that network, will they send me (my friend) a 1099 to fill out and then send to IRS (cpa will do that).?

    I'm a little confused because it doesn't seem like a big deal. The network will be cutting the check for the company, not my friend. So technically, shouldn't the earnings be documented under the LLC's name?

    I clearly don't want to get my friend or myself in trouble. I just want to do the right thing, hence this thread. Thanks for all your comments. More thoughts is appreciated.
    You do not fill out a 1099 - that form is filled out by the vendor - it is required of every entity who pays non-employee compensation to anyone (other than a corporation) to whom they pay $600 in a year - and sent to the IRS so they know who has received what income. If a 1099 is sent to the IRS with incorrect information, it will raise serious questions - more serious the more money is involved. Big vendors are required to send 1099s electronically. When the IRS receives forms electronically, they are automatically checked for name and id number correctness against the IRS database, and if a form shows up with incorrect info it will immediately be rejected and the vendor contacted, raising questions with them. The name and id on a form must match IRS records, and that is the person responsible for paying the tax on the income.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
    "If you don't have time to do it right, when will you have time to do it over?" -John Wooden;
    "Raj, there’s no place for truth on the internet." -Howard Wolowitz[/SIZE]

  11. #11
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    IANAL, but...Sounds to me like the proper (and legal) thing to do would be to get a Federal EIN (tax number) for the LLC. Then submit that to the network - who will cut the checks to the LLC and issue a 1099 to the LLC. I did that for years before we changed status to an INC. If you are a single-owner LLC you just report all that "stuff" on the appropriate forms (connected to Schedule C, if I recall).
    Bill / Marketing Blog @ 12PM - Current project: Resurrecting my "baby" at South Baltimore..
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  12. #12
    Outsourced Program Manager e-Gazer's Avatar
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    Quote Originally Posted by julian View Post
    it doesn't make any sense. Why would you not want your name associated with the network? If they have wronged you, then you shouldn't be working with them.
    +1

  13. #13
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    Some of these laws are different in different states. I would check with the IRS and ask them about the specific laws and regulations in your area. It can be a pain to get a hold of an agent, but its always better to be safe than sorry.

  14. #14
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Quote Originally Posted by EmpyreAndrea View Post
    Some of these laws are different in different states. I would check with the IRS and ask them about the specific laws and regulations in your area. It can be a pain to get a hold of an agent, but its always better to be safe than sorry.
    Wrong. This is Federal law and the same in EVERY state.

    Add - The IRS does not possess and will not provide information regarding legal requirements of any state or local jurisdiction.
    Last edited by Phil Kaufman aka AffiliateHound; October 26th, 2010 at 07:58 PM.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
    "If you don't have time to do it right, when will you have time to do it over?" -John Wooden;
    "Raj, there’s no place for truth on the internet." -Howard Wolowitz[/SIZE]

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