What Vendors get a 1099?

LLC's will need a 1099. I search vendor websites to see if the holding company is Incorporated. If so, I do not file one for them. Your rent and legal will need a 1099 as well as any unincorporated service providers. Tax exempt or non profits don't need 1099's. Vendors receiving less than $600 in payment for the year do not need a 1099 either.

Does anyone know if unincorporated hotels need a 1099?

Thank you for your help and tips Sarah07!

Just some added thoughts:

An LLC that is taxed as a corporation does not get a 1099.

S-Corps and C-Corps do not get 1099's

LLC's that are taxed as sole proprietors or partnerships do get 1099's.

This is the standard practice that the CPA's I work for use.

Also, beware about the $600 minimum. . .this is for Non-employee compensation. Other fields, such as 'fishing boat proceeds' have no minimum. Be sure you know what you need to 1099 for and what the particulars are.

Hope this helps,

Laura

How do I get the information on how an LLC vendor is taxed?

Answer, on their W-9, the LLC should be checking the box for Other and write in LLC if they are taxed as a Corp and don't require a 1099. Otherwise, they should check the Individual/Sole Proprietor box indicating that they should get a 1099. Would you agree?

The problem is they don't know and won't pick up the phone to call their CPA.

Any thought you care to contribute would be welcome

When in doubt, send the 1099.

Laura D

That is so true.  It would be hard for them not to know.  If they pay a CPA to do a tax return for the company separate from their 1040, then they check the corporation box.  If all of their business activity appears on their 1040 with no other tax returns being done, then they are individual/sole proprietor and should get a 1099.

It could be the difference between them paying less than $500 to get their taxes done every year (for their 1040) and paying more than $1,000 to get their taxes done, which is what they'd be paying if they had to do a corporate return and a 1040.

Dear CJFogus,

The 1099 corresponds to who you have written a check TO, not what the services were for.

For vendors that provide services, you simply request a completed w-9.
From the w-9, you decide if you need to issue a 1099.

Your vendor checks a box on the w-9, in regards to the type of entity they are:
SolePropritor
Corporation
LLC

btw- the w-9 is actually 4 pages. the vendor completes and returns the 1st page. The other 3 pages are basically instructions, which are helpful to the vendor and also the payeee.

I have a question regarding 1099 status. If my CPA is incorporated then they do not receive a 1099? but everything that I have learned is that all legal and accounting services should receive one? Also what about the status of an LTD company? is that 1099 or considered as a different structure?

I own a LLC. I have a Seamless Gutter business that installs gutters for commercial and residential. The state of Mississippi also requires that I charge sales tax. So, I am an LLC that is a retail business just as Walmart or any other retail business, therefore it would seem that my company would not recieve a 1099. However it should not matter if I do receive a 1099, because I am showing all of my earnings anyway.

I am still confused. I need to
do some 1099's for a dental office.
Do I send them to dental supply
companies and labs? What it they
are a PC or incorporated?

Please advise.

alicia

Wow this whole line got confusing. A 1099 is used to pay non employees that did work for you as an independent  contractor. They will tell you if they are a 1099 entity or not. 

 This isn't for vendors who sell you an item (parts) or service (fed ex, electric company, landlord etc).

Example - Our company needs a part time sewer for one job. We aren't going to hire this person for a job that will last a couple of weeks. She is an independent contractor who may or may not have people working for her.  The sewer does the work and sends us a bill.  We pay her as a 1099 vendor and then at the end of the year, 1099's are generated at the same time W-2 are generated. She is responsible for paying her own taxes.

Most 1099 'vendors' are independent contractors. Our CPA and accountant are NOT contractors. We simply pay the bill. We don't send them a 1099.

Think about it for a minute. If this was the case, you would need to send a 1099 to every single vendor you pay and this simply isn't the case. 1099's are the exception, not the rule.

If you have any question whatsoever on how to handle this or who is a 1099 vendor, you should speak with your CPA/Accountant and with the vendors who you have a question about.

Thanks, Lynda

 Tax laws change often.  It's best to get accurate information from the government website.  Here is a link to the 2012 instructions for 1099misc:

http://www.irs.gov/instruction...

@JeffTerry - your statement is also incorrect.  In some instances corporations get 1099's - attorneys and medical and healthcare for example.

Hi ddassler,

Go back to the IRS website, www.irs.gov and click on the 1099-MISC which is right under the picture of the lady on the left side.  You will need to give the Vendors a W-9 form so you have the information to fill out the 1099.

Laura Kaniuk - LJK Bookkeeping Services

Hello,

Does anyone know if an Ltd company gets a 1099?

Thanks in advance for your time! 

Angie