***Using your business credit card means you have to deal with fewer 1099s to prepare. See below.

Don’t forget to gather up all W9s from your vendors and/or your landlord BEFORE YOU PAY THEM. At year-end, you do not want to scramble trying to call all your vendors to get this form filled out. You will need this form to file your 1099s with the correct information.

You should have each recipient/payee complete and sign a form W-9, and keep this form in your records. Click here to download FORM W-9 and instructions.

• In general terms, Form 1099-MISC is issued to everyone but corporations. This includes individuals, partnerships and most professional business entities.
• An LLC is only considered to be a corporation if it has elected to be taxed as a corporation. If it has not, the LLC should receive a 1099-MISC. (that’s why you need the FORM W9 to see if they are taxed as an S-Corporation or C-Corporation, keep the W9 with your business records)
• You should only include payments made by cash, check, ACH transfer or other direct means on Form 1099-MISC. Payments by credit card or through third-party transaction networks that are reportable on Form 1099-K (see below) are specifically excluded from Form 1099-MISC reporting.
• You do not need to file a Form 1099-MISC (due date will be next year 1/31/2020) if your payments are below the minimum reporting threshold. For most transaction types, the threshold is $600. But it’s hard to know what you will pay in total to a vendor so its easier to get the w9 before you write them a check.

If you are unsure, please email/call with questions so we can make sure you are covered. Here the requirements per the IRS: About Form 1099-MISC and Form 1099-INT

At year-end, you can have our firm help you prepare the 1099s, email us or contact us HERE.