FREQUENTLY ASKED QUESTION: When do I have to give someone a 1099 and what do I need from them in order to do so?
When you are operating a business and you make payments of $600 or more to a person (or to an unincorporated business, such as an LLC, a Partnership, a Sole Proprietor, etc) for services and/or rent, you may need to issue them a 1099 at the end of the year. Additionally, if you pay $10 or more to someone for royalties, you may also need to issue a 1099.
The form you will issue them at the end of the year is called Form 1099-MISC and can be found here: 1099-MISC
Before paying these people/companies, you will need to have them fill out a Request for Taxpayer Identification Number and Certification (Form W-9). This form will provide you with the person or company’s name, Social Security Number or Tax ID #, Address, and they will sign certifying that they are a US Citizen, that the information contained on the form is truthful, and that they are not subject to backup withholding of taxes.
You can obtain a copy of Form W-9 here: Form W-9
