The basics as I know them. If I pay a company more than $600 then I may have a requirement to send a 1099-Misc. The deciding factor is if they are a corporation or not?

The question: What is the definition of corporation used here? Is it how they are registered with the state, or how they have chosen to be taxed? I saw recently that Amazon Web Services is an LLC. So, not a corporation. But they may choose to make the S election, or even elect to be a C-Corp for federal tax filing purposes.

Likewise, a company that is a registered corporation can elect at least S Corp status, and depending on the state maybe even Partnership tax status?

Do I submit based on company registration type, or tax election?

asked 05 Apr '12, 16:35

guitarthrower's gravatar image

accept rate: 0%

Obtain a signed Form W-9 from the vendor and issue a 1099-MISC depending upon how they are classified there. You can no longer look at whether they are an LLC or corporation as the sole determination for whether a 1099 must be filed.


answered 18 Apr '12, 17:25

Bill-EA's gravatar image

accept rate: 3%

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Asked: 05 Apr '12, 16:35

Seen: 1,105 times

Last updated: 18 Apr '12, 17:25