Form 1099-NEC for payments above $600

[Jonathan Blanco]

I have a single-member LLC to do fix-and-flips. I pay other small businesses (LLCs) for work they do on my property (remodels, AC work, a new fence, new roof, etc). My payments to them are made out to their LLCs. I read 1099-NEC is required if they file their taxes as single-member or partnership. My questions are:

- Do I have to issue forms 1099-NEC to them for payments above $600? 

- If so, do I give them a W-9 to fill out before work starts? Before payment is made?

- What if they refuse (for some reason) to fill out the W-9? If they refuse after I paid them for the work?

- Is form 1099-NEC filed through a software? Are there free options to file it?

Any other information I am not thinking of is greatly appreciated!

[Erik Estrada]

Quote from @Jonathan Blanco:

Quote from @Michael Plaks:

Quote from @Jonathan Blanco:

I have a single-member LLC to do fix-and-flips. I pay other small businesses (LLCs) for work they do on my property (remodels, AC work, a new fence, new roof, etc). My payments to them are made out to their LLCs. I read 1099-NEC is required if they file their taxes as single-member or partnership. My questions are:

- Do I have to issue forms 1099-NEC to them for payments above $600? 

- If so, do I give them a W-9 to fill out before work starts? Before payment is made?

- What if they refuse (for some reason) to fill out the W-9? If they refuse after I paid them for the work?

- Is form 1099-NEC filed through a software? Are there free options to file it?

Any other information I am not thinking of is greatly appreciated!

Most of your questions are addressed here:

https://www.biggerpockets.com/forums/51/topics/1167632-expla... 

Thank you.

Can I issue the 1099 without having a w-9 on record? For example, their EIN is public record as well as their address, in my case, on the Florida website where business entities can be looked up.

 You should always collect one prior to issuing any payment. This will prevent you from scrambling and asking for it. Once people get paid, especially non-employees/independent contractors they will disappear....