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Individual vs. Business Contractors

Updated over 3 weeks ago

When inviting a contractor to Atto Payroll, you’ll need to choose whether they are an Individual or a Business contractor. This classification determines what information they’ll need to provide.


Individual Contractor

This option is for contractors who operate in their personal capacity, such as:

  • Sole proprietors

  • Freelancers

  • Independent workers not using a registered business name

Required: Social Security Number (SSN)


Business Contractor


This option is for contractors who operate through a formal business entity, such as:

  • LLCs

  • Corporations

  • Agencies or companies offering services

Required: Employer Identification Number (EIN)


Choosing the correct contractor type ensures accurate tax reporting and compliance with IRS regulations.


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