Video: What Does a Startup Need to Know about IRS 1099 Forms?
1099s are an IRS form that you’ve got to get out to your contractors by January 31st.
That’s the first thing to keep in mind. 1099 forms are due by January 31st.
The second thing that you want to consider is how much you’ve paid your connectors on a cash basis during the previous year. Really anything over $600 in aggregate, those folks should get a 1099.
The last thing that you want to consider is who you should be sending those 1099s out to. The answer is anyone who’s not a corporation, so LLCs, sole proprietors, maybe who is just a guy who is a contractor for you, often lawyers and landlords.
All of those folks you’re going to want to take into consideration for giving them a 1099. How you figure out whether or not they are a corporation versus anything else is by giving a W-9. Again, 1099s, they’re due by January 31st.
You’re going to want to give one to anyone you paid over $600 and really anyone who’s not a corporation.