Business & farm


@kiddkevin01 wrote:

Thanks for the reply. 

 

So there is no communication between IRS and the company paying my company for the service at all?


Anyone involved in business must issue a 1099 (NEC, MISC or other type) if they pay more than $600 to another business that is a sole proprietorship, an LLC, or a partnership.  Businesses who pay for services do not have to issue a 1099 if the entity they are paying is an S or C corp.

 

If you own an S-corp, other businesses that hire your business for services are not required to issue a 1099.

 

You are required to report all your business income using your own reliable records, even if you don't get tax paperwork from other companies that hire your company.