Overview of 1099 Requirements for Businesses
Only your business, including your sole proprietorship, is required to issue a 1099-MISC or 1099-NEC. You must file a form 1099 with the IRS and to each unincorporated business or individual to whom you paid $600 or more. Failure to file can result in penalties.
Understanding 1099 Exemptions and Requirements
You do not need to send a 1099-MISC to a corporation, including S corporations and C corporations. Different rules apply based on the business structure.
Issuing 1099s for Specific Services
Do I Need to Issue a 1099 to My Cleaning Lady?
If the person is self-employed, a single-member LLC, or a partnership and you pay them $600 or more in a year, you must issue an IRS Form 1099-MISC.
Employee Classification and 1099 Requirements
Payments to corporations generally do not need to be reported on a 1099-MISC; LLCs and partnerships are issued 1099s unless taxed as S- or C-Corporations. The threshold for issuing a 1099-MISC is $600.