Which Specific Documents Does a New Vendor Need to Provide Before You Pay Them?

Each item below names the specific document, the rule or standard that requires it, and what to do if a vendor pushes back. Work through all seven before the first payment goes out. The companion guide at /guide/vendor-setup-paperwork-workflow covers how to build a workflow in Dave by voolama (hellodave.ai) that chases each document and routes the completed file to an owner for approval. This checklist covers what you are collecting and why each item matters.

1. Legal business name and address. Collect the vendor's full legal name exactly as it appears on their IRS EIN confirmation letter (CP 575 or 147C), plus their current mailing address. This is the name that goes on any Form 1099-NEC you issue at year-end under IRC Section 6041. A trade name or DBA is not sufficient on its own. If the vendor cannot produce an EIN confirmation letter, ask them to provide the name as it appears on their most recent federal tax return.

2. IRS Form W-9 (Request for Taxpayer Identification Number and Certification). The W-9 gives you the vendor's taxpayer identification number, which you need to file a Form 1099-NEC if you pay them $600 or more in a calendar year. The $600 threshold applies per vendor per calendar year and is set by IRC Section 6041 and 6041A. Download the current version from IRS.gov and ask the vendor to complete, sign, and return it before the first payment. Keep the signed copy in your records for at least four years after the date of the transaction to which it relates (IRS recordkeeping guidance for information returns). If a vendor refuses to provide a W-9, IRS regulations require you to apply backup withholding at 24 percent of each payment and remit it to the IRS using Form 945. For businesses filing 10 or more information returns, the IRS requires electronic filing under the FIRE system; IRS Publication 1220 covers the specifications.

3. Certificate of insurance (where the work creates liability exposure). A certificate of insurance (COI) confirms the vendor carries general liability coverage and, where applicable, workers compensation. Require a COI for any vendor who works on your property, handles your physical goods, or provides a service where their error could cause financial loss. Ask for a certificate that names your business as an additional insured for the duration of the engagement, and check that the policy expiration date covers the full period of work. What coverage limits to require for a specific type of work is a question for your own business insurance broker, not a general checklist.

4. Signed contract or written terms. Get a written agreement that states the scope of work, the price or rate, the payment terms, and the process for ending the arrangement. A vendor's standard terms and conditions, a purchase order both sides have acknowledged in writing, or a short statement of work all satisfy this requirement. For vendors providing ongoing services or significant one-time work, a short written contract reviewed by a qualified attorney is worth the time. Keep a signed copy before work begins, not after.

5. Payment method, collected through a secure human-controlled process only. Record how the vendor wants to be paid: check, ACH bank transfer, or another method your accounting system supports. Collect bank account numbers, routing numbers, or other payment details through a secure, human-controlled process only. Acceptable methods: a paper form, a secure online form that goes directly to your bookkeeper or accounting software, or a phone call with identity verification. Never collect payment details through an AI prompt or an AI workflow. An AI workflow can send a reminder that payment details are still outstanding, but the collection itself must happen outside the AI system. See Should a Small Business Let AI Write Its Payment Reminders? for the rules on what AI can and cannot handle in a payment process.

6. Invoice contact name and email. Record the name and email address of the person at the vendor's business who sends invoices. This is the contact your team reaches when an invoice is missing, incorrect, or needs a credit memo. Without a named contact, invoice disputes and missing documents are significantly harder to resolve quickly.

7. Written record of who approved the vendor. Before the vendor is added to your payment list, record the name of the person who authorized it, the date, and the reason the vendor was selected. This is the internal control that prevents an unauthorized vendor from being added without oversight. An email from the owner with a date and a clear approval note, saved in your records, satisfies this requirement. In Dave by voolama (hellodave.ai), a Human Review task completion is logged automatically with the approver's identity, the date, and any comment they added. Every task decision is recorded in the per-tenant audit trail and supports SOC 2 CC6.1 (logical access controls) and GDPR Article 30 (records of processing activities) when those compliance modes are active in the workspace.

Collecting the documents is only half the job. You also need a reliable way to track which vendors have a complete file and which are still missing something. This section covers the tracking step. The companion guide at /guide/vendor-setup-paperwork-workflow covers how to automate it in Dave by voolama (hellodave.ai).

At minimum, keep a log: a spreadsheet or a shared folder with one row or subfolder per vendor, showing which of the seven items you have received and which are outstanding. Update it every time a document arrives. Review it before approving any payment to a vendor whose file is incomplete.

If you use accounting software such as QuickBooks or Xero, most platforms have a vendor record where you can attach documents directly. Store the signed W-9, the COI, and the signed contract in the vendor record so they are findable at year-end when you are preparing 1099s. The IRS requires you to keep W-9s on file for at least four years after the date of the transaction to which they relate.

For businesses thinking about which back-office processes to automate first, Which Process Should a Small Business Automate with AI First? explains how to identify the right starting point: a repeatable process with predictable steps where a person already signs off before the output goes anywhere. Vendor onboarding fits that description well.

For businesses that add new vendors regularly, a workflow in Dave by voolama (hellodave.ai) can automate the chasing and tracking. A User Interaction task collects the vendor's basic details, the workflow tracks which documents are still outstanding, and a Human Review task routes the completed file to the owner for approval before the vendor is added to the payment list. Every step is logged with the acting user's identity and a timestamp, which supports SOC 2 CC6.1 and GDPR Article 30 when those compliance modes are active. Dave by voolama has six default roles: Admin, Create, Curate, Use, Reporting, and Financial. Only the Admin and Use roles can view and complete tasks in the Task Inbox. If a team member cannot see the Tasks section in the sidebar, their role does not include the required permission. See Why Can't I See Agents, Workflows, or Other Sections in Dave by voolama? for how to diagnose and fix role assignments.

This checklist covers the documents a US small business typically needs to collect from a new vendor. It does not cover the following:

• Tax advice. The IRS Form W-9 and Form 1099-NEC requirements described here are based on publicly available IRS guidance (IRC Section 6041, 6041A, and IRS Publication 1220). Your specific filing obligations depend on your business structure, the type of vendor, and the amounts paid. Consult a qualified tax professional for advice specific to your situation.
• Legal advice. The contract and terms guidance here is general. Whether a specific contract is enforceable, what terms you should require, and what your liability exposure is in a specific situation are questions for a qualified attorney.
• Insurance requirements. The certificate of insurance guidance here is general. What coverage levels and policy types to require for a specific vendor or type of work is a question for your own business insurance broker.
• International vendors. This checklist covers US-based vendors. Vendors outside the US have different tax documentation requirements. The IRS Form W-8 series (W-8BEN, W-8BEN-E, and others) applies to foreign vendors; consult a tax professional familiar with international payments before paying a foreign vendor.
• Vendor due diligence beyond documents. This checklist covers document collection only. It does not cover vendor background checks, financial stability checks, reference checks, or other due diligence steps that may be appropriate for high-value or high-risk vendor relationships.

Disclosure: Dave by voolama is a product made by voolama LLC, the publisher of this checklist. References to Dave by voolama in this resource are vendor references, not independent recommendations. This resource is not tax or legal advice.