jjm1181
offlineMember
Is it not true that 1099 vendors are for individuals who perform services for the company in excess of $600? If the payment is made to their business, then they wouldn't qualify as a 1099 vendor correct? Or does their business type matter? I ask because I just got a call from a lady who performed some even coordinating for our company. We paid her company but she's requesting a 1099. What am I missing here?
Jeff - another71.com
onlineadmin
Only Corporations are exempt ... I am an LLC and I get 1099s.
Acct
offlineMember
Certain corporations are not exempt - like for legal services.
Most other (non corporation) businesses get 1099s, with certain exceptions.
I will try to find the source on the IRS website where I looked up this information for work.
Acct
offlineMember
This is for '11 (I think it is the most recent one):
http://www.irs.gov/pub/irs-pdf/i1099msc_11.pdf
This is for '12:
http://www.irs.gov/pub/irs-pdf/i1099msc.pdf
katiekanton
offlineMember
Also, you don't have to 1099 LLCs that have elected corporation tax treatment, although I don't know why anyone would choose that. I've never run across a company that had elected it, although I found LOTS who though LLC stood for "limited liability corporation" and they were exempt from 1099s. In my time I've had a few cuss me out for sending them one because "now they had to report that income". [eye roll]
mla1169
offlineMember
I used to send 1099's to all vendors even those who didn't need them (corporations). They can use them, not use them....either way I was covered. But yes, many companies can and do get a 1099.
You should also have a W-9 on file for all vendors.
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