topic If I hire a contract labor that is an Incorporated business or LLC am I required to file a 1099 or alt.? in Business & farm

If I hire a contract labor that is an Incorporated business or LLC am I required to file a 1099 or alt.?

hope1 — Wed, 05 Jun 2019 18:48:13 GMT

We often partner with companies on projects. The companies are incorporated.

Are we required to file 1099s for another LLC if they are reporting their own income?

There is a difference between being incorporated, and bei...

TaxGuyBill — Wed, 05 Jun 2019 18:48:40 GMT

There is a difference between being incorporated, and being an LLC.

Give them a W-9 to fill out and have them give it back to you. You should do this before you pay them (ideally before they do any work for you).

In box 3, if they check "C Corporation" or "S Corporation", NO, you do not need to issue a 1099-MISC for their services.

If they are just an LLC that has not made the election to be taxed as a corporation (they would not check the corporation boxes), then YES, you do need to issue them a 1099-MISC for their services.

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

No. Not to other companies. Only to Self Employed indiv...

VolvoGirl — Wed, 05 Jun 2019 18:48:42 GMT

No. Not to other companies. Only to Self Employed individuals as contract labor or independent contractor.

Re: No. Not to other companies. Only to Self Employed indiv...

gateens007 — Sat, 09 Nov 2019 05:32:05 GMT

Hi VolvoGirl. Do i get it right.. If i am a C-Corp and i hire self-employed individual i need to get W-9 from them before i pay them ? Correct ? Please help me when you have time with answer! Thanks

Re: No. Not to other companies. Only to Self Employed indiv...

TomD8 — Sat, 09 Nov 2019 17:13:25 GMT

<<If i am a C-Corp and i hire self-employed individual i need to get W-9 from them before i pay them ?>>

Yes, if a self-employed person does contract work for your business you may be required to issue them a 1099-MISC. Therefore you should obtain a W-9 from them so that you have their correct tax ID.

Re: No. Not to other companies. Only to Self Employed indiv...

Critter — Sat, 09 Nov 2019 17:32:58 GMT

To CYA you should always have any contractor fill in a W9 for your records whether you need to issue a 1099-misc or not ... if you are ever audited you are protected.