Do I send a 1099-NEC to as S corp for services

Forum|Forum|1 year ago
January 28, 2025
1 reply
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I have an LLC and I hire several contractors. If their W9 indicates that their business is an S-Corp or an LLC that is taxed as an S-Corp, should I still send them a 1099-NEC if I paid them more than $600 for the year? Thank you!

Best answer by MAK70

No, you do not send a 1099-NEC if you made the payment to another business that is incorporated, and it was not for medical or legal services.

See Am I required to file a Form 1099 or other information return?

MAK70Answer

No, you do not send a 1099-NEC if you made the payment to another business that is incorporated, and it was not for medical or legal services.

See Am I required to file a Form 1099 or other information return?

capshockAuthor

Thank You,

I sent one 1099 to one of the contractors but did not submit it to the IRS yet. Can I just tell the contractor to disregard the 1099 as it was sent in error or is there more I will need to do? Thanks again!

ThomasM125

You can just tell the contractor to disregard the 1099-NEC form if you are not going to submit it.

If the business is an LLC taxable as a corporation, it is not technically a corporation. Since it is difficult to determine the legal structure of a business, it may be best to issue the Form 1099-NEC if it is a small business or individual.

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