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DO i need to issue a 1099-Misc to an S Corp?

Forum|Forum|6 years ago
June 7, 2019
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My business which is a single person LLC, employed services of an S Corp for about 18000 dollars in 2014. Do i need to issue a 1099-MISC to this corporation? I read that corporations are exempt from 1099-MISC, If corporations are exempt from 1099-MISC how are they taxed for this income?

I need to show this amount as an expense to my business.

TurboTax Home & Biz Windows

Best answer by bwa

You do not need to provide a corporation (including an S-corporation) a Form 1099-MISC.

If corporations are exempt from 1099-MISC how are they taxed for this income?

You shouldn't report income based on Forms 1099-MISC. Rather, you should keep adequate records of your business income and expenses and base your return on those records. One reason is because even for non-corporations, not all people who should issue Forms 1099-MISC do. Another reason is much of their income is not required to be on a Form 1099-MISC if provided to a nonbusiness. As an example, a heating and air condition company, or a pest control company, providing services to private homes would not receive any Forms 1099-MISC, but are still required to report all of their income.

B

bwaAnswer

Employee

You do not need to provide a corporation (including an S-corporation) a Form 1099-MISC.

If corporations are exempt from 1099-MISC how are they taxed for this income?

You shouldn't report income based on Forms 1099-MISC. Rather, you should keep adequate records of your business income and expenses and base your return on those records. One reason is because even for non-corporations, not all people who should issue Forms 1099-MISC do. Another reason is much of their income is not required to be on a Form 1099-MISC if provided to a nonbusiness. As an example, a heating and air condition company, or a pest control company, providing services to private homes would not receive any Forms 1099-MISC, but are still required to report all of their income.