Working with our small business clients, I'm finding that the 1099 requirements seem confusing. Most business owners know that you're required to complete a 1099-MISC reporting form for an independent worker or unincorporated business if you paid that independent worker or business $600 or more in total for the year.
Who is considered in this category? This can include a commercial cleaning service, a landscaper, a technology expert, a subcontractor, and even your office landlord. In general, you are expected to send 1099-MISC forms to most small-business LLCs. The tax law looks at whether they are incorporated: an LLC (limited liability company) is not the same as a Corporation.
I suggest getting new vendors to complete W-9 forms as soon as you begin working together. This way, it's not a scramble at year end to figure out who gets one. The vendor indicates on their W-9 how they are set up for taxes and then you can easily determine requirements along with your CPA.
Louri Rivero Borr is a CPA licensed in both NJ and NY, with over 25 years of experience. The firm can provide you with unparalleled accounting services, provide tax services and advice, and perform audits, reviews or compilations.
Our clients, businesses and individuals, can expect us to cater to their unique needs. As member of QuickBooks Professional Adviser program, we can help you with your accounting software needs. You will receive personal attention and expert service from start to finish. Our mission is to focus on your current needs and future requirements.
The opinions expressed herein are the writer's alone, and do not reflect the opinions of TAPinto.net or anyone who works for TAPinto.net. TAPinto.net is not responsible for the accuracy of any of the information supplied by the writer.