topic Re: Do I issue 1099-MISC or 1099-NEC to an LLC for products? in Get your taxes done using TurboTax

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

Rdonald — Tue, 10 Feb 2026 10:16:21 GMT

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?

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

Anonymous_ — Sat, 06 Jan 2024 00:18:20 GMT

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

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

Rdonald — Sat, 06 Jan 2024 00:22:10 GMT

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

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

Anonymous_ — Sat, 06 Jan 2024 00:36:24 GMT

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

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

Rdonald — Sat, 06 Jan 2024 00:47:44 GMT

Thank you.