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hope1
New Member

If I hire a contract labor that is an Incorporated business or LLC am I required to file a 1099 or alt.?

We often partner with companies on projects. The companies are incorporated. 

Are we required to file 1099s for another LLC if they are reporting their own income?

1 Best answer

Accepted Solutions
TaxGuyBill
Level 9

If I hire a contract labor that is an Incorporated business or LLC am I required to file a 1099 or alt.?

There is a difference between being incorporated, and being an LLC.

Give them a W-9 to fill out and have them give it back to you.  You should do this before you pay them (ideally before they do any work for you).

In box 3, if they check "C Corporation" or "S Corporation", NO, you do not need to issue a 1099-MISC for their services.

If they are just an LLC that has not made the election to be taxed as a corporation (they would not check the corporation boxes), then YES, you do need to issue them a 1099-MISC for their services.

https://www.irs.gov/pub/irs-pdf/fw9.pdf


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5 Replies
TaxGuyBill
Level 9

If I hire a contract labor that is an Incorporated business or LLC am I required to file a 1099 or alt.?

There is a difference between being incorporated, and being an LLC.

Give them a W-9 to fill out and have them give it back to you.  You should do this before you pay them (ideally before they do any work for you).

In box 3, if they check "C Corporation" or "S Corporation", NO, you do not need to issue a 1099-MISC for their services.

If they are just an LLC that has not made the election to be taxed as a corporation (they would not check the corporation boxes), then YES, you do need to issue them a 1099-MISC for their services.

https://www.irs.gov/pub/irs-pdf/fw9.pdf


VolvoGirl
Level 15

If I hire a contract labor that is an Incorporated business or LLC am I required to file a 1099 or alt.?

No.  Not to other companies.  Only to Self Employed individuals as contract labor or independent contractor.

gateens007
New Member

If I hire a contract labor that is an Incorporated business or LLC am I required to file a 1099 or alt.?

Hi VolvoGirl. Do i get it right.. If i am a C-Corp and i hire self-employed individual i need to get W-9 from them before i pay them ? Correct ? Please help me when you have time with answer! Thanks

TomD8
Level 15

If I hire a contract labor that is an Incorporated business or LLC am I required to file a 1099 or alt.?

<<If i am a C-Corp and i hire self-employed individual i need to get W-9 from them before i pay them ?>>

 

Yes, if a self-employed person does contract work for your business you may be required to issue them a 1099-MISC.  Therefore you should obtain a W-9 from them so that you have their correct tax ID.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
Critter
Level 15

If I hire a contract labor that is an Incorporated business or LLC am I required to file a 1099 or alt.?

To CYA you should always have any contractor fill in a W9 for your records whether you need to issue a 1099-misc or not ... if you are ever audited you are protected.  

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