Contract labor 1099

[lowbattery]

My small business (one man shop) paid a guy to do some work for the business in 2016. The total payment was $432. He does not have a business. This will not be recurring work, it was a one time deal. 1. Does he need a business license to do the work? 2. Does he need to provide me a W-9. 3. Do I need to 1099 him?

[Critter]

No, no & no.

[Critter]

although having a W-9 in hand is always a good thing to do ... have all subs sign one BEFORE you give out the FIRST check of the year so that if you do end up paying them $600 or more during  the year you have the required info to complete a 1099 in January.   Easier to get it first then to try locating them later.

[lowbattery]

Thank you for the quick answer! I will make sure I get W-9s in the future.

[VolvoGirl · Accepted solution]

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