Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Still need to file? Our experts can get your taxes done right. Get started >
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Showing results for 
Search instead for 
Did you mean: 
Level 1

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

1 Reply
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.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing
Manage cookies