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Accounting & Bookkeeping & Small Business Forum
Accounting, Bookkeeping, Marketing, and Small Business Resource
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Guest
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| Posted: Fri Oct 29, 2004 10:06 am Post subject: 1099's |
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| What type of business entity is required to send out 1099's to vendors? I know that S & C Corps do, but what is the requirement for LLC's, Sole Proprietorships and Non Profits? |
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Guest
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| Posted: Fri Oct 29, 2004 5:15 pm Post subject: RE: 1099's |
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| ALL businesses need to send out 1099,s if required. 1099,s are required to be sent to anyone who provides personal services to the business of over $600.00. The only exception is a 1099 does NOT need to be sent TO a business if that business is a C corporation. An exception to the exception is in the case of attorneys. 1099's MUST be sent to attorney even if they are incorporated. |
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Guest
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| Posted: Fri Oct 29, 2004 5:23 pm Post subject: RE: 1099's |
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Jack: I goofed. My post should read $600.00 or over not just over $600.00. Also, I would send 1099's in an amount under $600.00 if there is even the slighest chance that the recepient could be considered an employee by the government. Failure to do so, could destroy safe harbor consideration on the recepient. One of the first things the government will question if they challenge the independent contractor status is if you sent a form W9 AND A 1099 TO THE RECEPIENT.
RICHARD |
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