W - 9 related definitions
|Ownership Status Definitions and Information|
|Individual*||A person (not an actual business) who has a non-employee relationship with USNH by providing goods or services and should receive payment as an individual and not a business.|
|Sole Proprietor*||An individual operating a business in which the business does not exist separately from the owner. The individual accepts the risks of the business to the extent of all his or her assets, whether used in the business or used personally.|
|Corporation||A person or group of people who incorporate by receiving a charter from their Secretary of State. Includes associations, joint stock companies, insurance companies, and trusts and partnerships that operate as associations or corporations.|
|Partnership||A relationship between two or more persons who join together to carry on a trade or business. Each partner contributes money, property, labor or skill, and expects to share in the profits and losses of the business. Partners can be individuals, corporations, trusts, estates, and other partnerships.|
|Limited Liability Company (LLC)*||A business structure allowed by state statute, but not recognized by the federal government for federal tax purposes. This structure can take several forms including disregarded entity, corporation, and partnership depending on the relationship to the owner(s). Owners are called members and may include individuals, corporations, other LLCs, and foreign entities. There is no maximum allowable number of members. Some states permit "single member" LLCs, those that have only one member.
To be treated as a corporation, an LLC has to file Form 8832, Entity Classification Election with the IRS, and elect to be taxed as a corporation. Additionally, if the LLC is taxed as a disregarded entity/sole proprietorship we require the owner’s SSN.
|AA/EO||Affirmative Action/Equal Opportunity Employer|
*Social Security Numbers are required for all payments to individuals, for all payments to Limited Liability Companies designated as Disregarded Entities, and for all payments for services to sole proprietorships. If W-9 form indicates sole proprietorship provides ‘goods only’ without owner’s SSN, but it is determined payment to vendor is reportable on Form 1099-Misc, SSN is required.
Business Classification Definitions and Information
The IRS requires 1099 filing for various types of vendors. In addition to the standard reporting required for services in excess of $600, the IRS also requires all payments for services to Lawyers and Medical or Health providers. UNH also participates in many federally funded grant programs which require USNH to do a percentage of business with certain groups such as; Disadvantaged Veteran Enterprises, Minority Business Enterprises, Small Business, etc.
To make certain USNH remains in compliance with all required regulations, the information on the Business Classification form is required. Links to appropriate governmental sites are provided where known.
|8(A) Designation||A program created as part of the Small Business Administration (SBA) designed to help small and disadvantaged business to compete in the marketplace. It is also designed to assist the companies in gaining access to federal and private procurement markets. Companies must apply for this certification.
For more information on the program and its requirements, visit 13 CFR 124 (8(a) Business Development/Small Disadvantaged Business Status Determinations) as well as the 8(a) Business Development page to learn about benefits, eligibility standards, and goals of the 8(a) Business Development Program.
|Disabled Owned||A business that is a least 51% owned by one or more disabled persons who control and operate the business. Control in this context means exercising the power to make policy decisions and operate means to be actively involved in the day-to-day management of the business|
|Disabled Veteran Business Enterprise (DVBE)||A disabled veteran recognized by the state of California means a veteran of the U.S. military, naval, or air service, with a service-connected disability of at least 10% or more and who is a California resident. Where at least 51% is owned by disabled veterans and conducts daily business management and control. The home office cannot be a branch or subsidiary of a foreign corporation, foreign firm or other foreign-based business|
|Disadvantaged Business Enterprise (DBE)||A business that is usually certified by a federal, state or local government agency as having met all of the government standards that award eligibility, but may include women, minority, disabled and other disadvantaged by as a result of economic disadvantages with respect to education, employment, residence or business location or social disadvantage and lack of business training|
|Disadvantaged Veteran Enterprise (DVE)||A business that is a small business concern owned and controlled by veterans, where not less than 51% is owned controlled and managed by veterans. As defined in (38 U.S.C. ‘101(2)) See veteran definition|
|Historically Black Colleges / Universities & Minority Institutions (HBCU/MI)||Historically Black and minority colleges and universities that are recognized by the government as legitimate set-aside business opportunities.|
|HUBZone Certified||The Historically Underutilized Business Zones (HUBZone) Empowerment Contracting program was enacted into law as part of the Small Business Reauthorization Act of 1997. The program falls under the auspices of the U.S. Small Business Administration. The program encourages economic development in historically underutilized business zones - "HUBZones" - through the establishment of preferences.|
|Labor Surplus||Is generally defined for a Civil Jurisdiction rather than the entire MSA where the average unemployment number is 20% higher than the average U.S. unemployment rate in the last two calendar years.|
|Minority Business Enterprise (MBE)||A Minority Business Enterprise usually certified by a federal, state or local government agency as having met all of the government standards that award eligibility.|
|Minority-Owned||A business that is at least 51% owned by, and whose management and daily business operations are controlled by, one or more members of a socially and economically disadvantaged minority group, namely U.S. citizens who are African Americans (Black), Hispanic Americans, Native Americans, Asian-Pacific Americans and Indian Sub-Continent Americans|
|Service Disabled Veteran (SDV)||A business that a veteran with a disability that is service connected. The term “service connected” means, with respect to disability or death, that such disability was incurred or aggravated, in the line of duty in the active military, naval or air service. (38 U.S.C. ‘101(16)).|
|Small Business||A business concern eligible for assistance from SBA as a small business is one that is organized for profit, with a place of business located in the United States. It must operate primarily within the United States or make a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor. Together with its affiliates, it must meet the numerical size standards as defined in the Small Business Size Regulations, 13 CFR 121|
|Small Disadvantaged Business (SDB)||New certification eligibility criteria established by the SBA effective 7/1/99. All firms must be certified by one of the SDB Certification Agencies designated by the SBA. To qualify must be a small business, not exceed standards for Primary SIC, meet Contracting Officers’ assigned SIC code, be a U.S. Citizen and be 51% owned and controlled by one or more Socially & Economically Disadvantaged Individuals. The SBA classification is based on a Preponderance of the Evidence Clause” this SDB Certification is good for 3 years.|
|Woman Business Enterprise (WBE)||A Women Business Enterprise usually certified by a federal, state or local government agency as having met all of the government standards that award eligibility.|
|Women-Owned||A business that is at least 51% owned by, and whose management and daily business operations are controlled by one or more women who are U.S. citizens.|
|Veteran Owned||A business that is a least 51% owned by one or more veterans, who control and operate the business. Control in this context means exercising the power to make policy decisions and operate means to be actively involved in the day-to-day management of the business. The term “veteran” (38 U.S.C.’101(2)) means a person who served in the active military, naval, or air service, and who was discharged or released therefrom under conditions other than dishonorable.|
|Veteran Business Enterprise (VBE)||Under SBA Guidelines Small Business Act (PL 85-536) as amended states: Small Business Concerns owned and controlled by veterans not less than 51% owned by one or more veterans and in the case of a publicly owned business not less than 51% of the stock is owned by one or more veterans.|
|Vietnam Veteran||A business that is a least 51% owned by one or more Vietnam Veterans who served between 1/1/59 and 5/7/75 and have control and operate the business. Control in this context means exercising the power to make policy decisions and operate means to be actively involved in the day-to-day management of the business|
The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version.