To 1099 or Not To 1099, That Is The Question

Brice - Start-Up Guru & Guest Blogger

Do you pay companies or individuals for services for your business? If you do, you will need ask them to provide you with a form W-9. This form will give you all the information you will need if you do need to file a form 1099-MISC by next January 31st.

You may have to file Form 1099-MISC, Miscellaneous Income, to report payments for services performed for your trade or business. If the following four conditions are met, you must generally report a payment as nonemployee compensation.
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• You made the payment to someone who is not your employee;
• You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations);
• You made the payment to an individual, partnership, estate, or in some cases, a corporation; and
• You made payments to the payee of at least $600 during the year.

IRS Form W-9
IRS 1099 Filing Requirements

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