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hammerdog57
Level 1

Do i need to send 1099 to sub contractors that are incorperated

 
1 Reply
TomD8
Level 15

Do i need to send 1099 to sub contractors that are incorperated

 You do not need to send 1099-MISCs to corporations. This includes S-Corporations and C-Corporations.

You do need to send 1099s to single-member limited liability company (or LLCs) or a one-person Ltd. But not an LLC that’s treated as an S-Corporation or C-Corporation. Here’s another way to remember:

  • Sole proprietor = Do send 1099
  • Unincorporated contractor or partnership/LLP =  Do send 1099
  • An LLC that elects treatment as an S-Corporation or C-Corporation = Do NOT send 1099

Alas, there are some exceptions to this rule. You still need to issue 1099s for:

  • Attorney’s fees even if the lawyer is incorporated
  • Gross proceeds paid to an attorney (such as for legal settlements)
  • Payments to for-profit medical care providers


**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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