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

[hope1]

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?

[TaxGuyBill · Accepted solution]

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]

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

[gateens007]

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]

<<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.

[Critter]

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.