Skip to main content
Level 2
January 5, 2024
Question

Do I issue 1099-MISC or 1099-NEC to an LLC for products?

  • January 5, 2024
  • 1 reply
  • 5 views

I am trying to identify if my vendors should be issued a 1099.  If I know they are an LLC, but they were not providing consulting services, instead I bought equipment from them, do they still need a 1099?

1 reply

Level 15
January 6, 2024

Yes, you need to issue a 1099-MISC if you paid the LLC $600 or more during the tax year for equipment (not merchandise).

 

See https://www.irs.gov/instructions/i1099mec#en_US_202401_publink100044508

RdonaldAuthor
Level 2
January 6, 2024

Thank you.  So a snow mobile for $20k is equipment, but tires would be merchandise?  What defines equipment from merchandise?  

Level 15
January 6, 2024

Merchandise is goods held for resale to customers in the ordinary course of business.