Are 1099 required for S-Corp?
- Usually corporations, including S and C corps, do not receive 1099 forms. But they are required to send 1099s to all vendors, even corporations. There are exceptions where an S-Corp does get a 1099. If your business made a payment of at least $600 to one of the following, then you will need to issue a Form 1099 to these businesses, even if they are a corporation: medical or health care, attorney.
Reporting Payments to S Corps
The answer is not straightforward. In general, payments to an S Corp for services are not required on a 1099. However, there are exceptions. For example, if an S Corp provides legal or medical services, the payor must send a 1099. This requirement is regardless of S Corp status.
Specific Situations for Providing 1099s to S Corps
There are exceptions to this rule. If the LLC taxed as an S corp provides legal or medical services, a 1099 form is required regardless of the amount paid. Additionally, if the LLC provides rental or royalty income, a 1099 form must be sent if the annual payment is $600 or more.