Does a company need to send 1099 Misc's to LLCs that it leased business vehicles from? i.e. Co paid mthly rent to an LLC for trucks it leased."

[ChristinaS · Accepted solution]

Yes- most of the time.

If the $600 threshold is met, the exception would be as follows:

"Generally, payments to a corporation* (including a limited liability company (LLC) that is treated as a C or S corporation)." Most LLCs are NOT taxed as corporations.

Either way, you must provide a W-9 to this LLC, to have them answer that question. Get in the habit of asking for a completed W-9, when applicable, before 1099 filing time.

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

If taxed as a corporation, they would have to enter "C" or "S" near the Limited liability company box on line 3 of the W-9.

• If they write "P" for partnership, you issue a 1099-MISC with their EIN on it.
• If they are a single-member LLC that is not taxed as a corporation, they would check the Individual/sole proprietor or single-member LLC box. In the event its a SMLLC that is not a corporation, you would issue the 1099-MISC with their SSN on it. They can list the business name as DBA, but the ID # should not be their EIN.

https://www.irs.gov/instructions/i1099msc/ar01.html#d0e28

* corporations still get 1099-MISC for a select few reasons, such as attorney fees or medical payments. Not rents.