What type of vendors get a 1099

If you are asking yourself, how did she do that? You need to check out the List Management Friday Feature. The sorting of the list made the highlighted vendor stand out. This is a vendor that may want a second look. Having the Tax Classification on the list is helpful in so many ways. It is therefore essential to keep track of your s. A vendor is a company or person offering any good or service for sale. For tax purposes, any person who works for you renders any service or delivers a product to you is a vendor.

For instance, if you hired an attorney for legal consultation or proceedings, the attorney is your vendor. If you hired a contractor for landscaping, then the contractor is your vendor. To be a vendor, that person must not be employed by you. They must not receive any salary from you or be on your payroll. There are many different types of forms based on different sources of income, as discussed above.

Specifically, it tracks payments made to an individual or unincorporated business so that their income can be accounted for at the end of each year. There are a few different types of forms, the most common and most likely to be used by you is called the MISC.

Next, you need to look at what kind of entity your vendor is. If your vendor is a corporation a C Corp or an S Corp you do not need to issue them a The exception to this rule is with paying attorneys.

Did you pay your vendor via check, bank draft, debit card, PayPal, or credit card? Click here for a blank W9. Does a C-Corporation Have to Report s? Wright Updated July 23, Share on Facebook. IRS Requirements and Uncertainty If you are uncertain if an individual or company is a tax exempt entity, real estate agent or corporation, then you may wish to request Form W-9 from the company.