JulieS
Expert Alumni

Get your taxes done using TurboTax

No, there is not a standard way to determine if a business is incorporated, but there are ways to figure it out and there is a form you can use. 

 

If the the name of the business includes "Inc." at the end, they are incorporated, or at least presenting themselves that way. No 1099-NEC is required.

 

For people who present as individuals, the best practice is to ask them to complete a W-9 form for you. Click here to get the form. 

 

Only the first page is filled out and you keep it. Line 3 asks for their business classification. If they select "Individual/sole proprietor or single-member LLC", you need to issue a 1099-NEC if you pay them more than $600 during the year. 

 

The rest of the form provides their information that you need to complete the 1099-NEC. 

 

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