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Level 1
posted Jan 28, 2025 3:39:41 PM

Do I send a 1099-NEC to as S corp for services

I have an LLC and I hire several contractors.  If their W9 indicates that their business is an S-Corp or an LLC that is taxed as an S-Corp, should I still send them a 1099-NEC if I paid them more than $600 for the year?  Thank you!

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2 Best answers
Expert Alumni
Jan 28, 2025 3:42:37 PM

No, you do not send a 1099-NEC if you made the payment to another business that is incorporated, and it was not for medical or legal services.

 

See Am I required to file a Form 1099 or other information return?

Expert Alumni
Jan 28, 2025 4:11:03 PM

You can just tell the contractor to disregard the 1099-NEC form if you are not going to submit it.

 

If the business is an LLC taxable as a corporation, it is not technically a corporation. Since it is difficult to determine the legal structure of a business, it may be best to issue the Form 1099-NEC if it is a small business or individual.

 

 

3 Replies
Expert Alumni
Jan 28, 2025 3:42:37 PM

No, you do not send a 1099-NEC if you made the payment to another business that is incorporated, and it was not for medical or legal services.

 

See Am I required to file a Form 1099 or other information return?

Level 1
Jan 28, 2025 3:47:43 PM

Thank You,

 

I sent one 1099 to one of the contractors but did not submit it to the IRS yet.  Can I just tell the contractor to disregard the 1099 as it was sent in error or is there more I will need to do?  Thanks again!

Expert Alumni
Jan 28, 2025 4:11:03 PM

You can just tell the contractor to disregard the 1099-NEC form if you are not going to submit it.

 

If the business is an LLC taxable as a corporation, it is not technically a corporation. Since it is difficult to determine the legal structure of a business, it may be best to issue the Form 1099-NEC if it is a small business or individual.