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

[Rdonald]

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?

[Anonymous_]

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

[Rdonald]

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

[Anonymous_]

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

[Rdonald]

Thank you.