As a small business owner (sole proprietor) do I have to issue a 1099 for every service I pay for over $600, like plumbers and electricians?

Had to have an electrician come in and add new breaker box. Cost $1125 and I received a receipt for the service. Do I have to issue him a 1099 to use the expense on my taxes?

226

Expert Alumni

Feb 1, 2023 8:46:28 AM

The basic rule is that you issue a 1099 to anyone who is not an incorporated business. All sole proprietors should get a 1099 from you. If this was an incorporated business that issued you a bill then there is no need for a 1099.

What I will tell you is that if you're in doubt then get a W9 from them and issue the 1099. Why deal with the potential headache?

@GCKirt

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As a small business owner (sole proprietor) do I have to issue a 1099 for every service I pay for over $600, like plumbers and electricians?