BiggerPockets

I've paid a lot of contractors for work on my rehab. I am supposed to be sending 1099's?

I will pass along the advice my attorney gave us...

If they are any kind of disregarded entity send them a 1099. This means we send 1099's to all independent contractors who use their SS# as their tax id number whether they be sole prop, LLC, LLP, LP or just straight partnerships.

For corporations with separate tax ids, we do not send 1099s.

On LLCs with separate tax ids, a judgment call is made. Unless it is obvious they are not just a pass through entity, we send 1099s.

The fastest way, is to buy the 1099 package from Staples, OfficeMax, OfficeDepot etc.

If you use QuickBooks it can fill them out for you with just a few clicks of the mouse.

Oh, and I forgot to add to the list of those getting 1099s from us. Any attorney, regardless of entity, gets a 1099 if they did work for our business.

Work done for us personally by the lawyer types, like wills, etc, do not get 1099s.

AND...

You only send 1099s for services. If you also buy goods from an IC, you do not include the goods costs.