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Jax Tax
Jax Tax, Tax Attorney
Category: Tax
Satisfied Customers: 1408
Experience:  JD, LL.M in Business and Taxation, IRS Enrolled Agent. Expert in Business and Tax Transactions
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I started a recruiting company about a month ago (set it up

Customer Question

I started a recruiting company about a month ago (set it up with a Fic. biz name) and just placed my first candidate. My client is asking for a W9, the concern is I owe back taxes. A friend advised me to set-up an LLC. Should I quickly set-up an LLC before I fill out the W9 and is that possible ( need to fill out w-9 today)? If I set-up an LLC will they still garnish my wages?
Submitted: 6 years ago.
Category: Tax
Expert:  Jax Tax replied 6 years ago.

Jax Tax : Setting up an LLC is a good idea in general. The w9 is so they can report the payments to you or your LLC.
Jax Tax : The IRS has no idea about this relationship and the w9 is not filed with them.
Jax Tax : Your wages could be garnished if they new about the source and they could levy you income from the LLC you set up. That doesn't mean you shouldn't set one up, you should.
Jax Tax : Bottom line. They don't know about the source. I would be more worried about your bank account.