Some companies prepare 1099’s for everyone eventhough it may not be required. If you paid any individual $600 or more for personal services, then a 1099 is required (that includes paying an unincorporated landlord).
When we say individuals, that may be confusing. Clearly if you wrote the check to JONES, INC, that is a corporation but I’d get a W9 just in case.
Your vendors should complete a Form W9 available on irs.gov or click here http://www.irs.gov/pub/irs-pdf/fw9.pdf?portlet=103. THIS tells you what you need to know to determine whether a 1099 is required.
You do not have to do 1099’s for C Corps, S Corps, Partnerships or Trusts/Estates.
You also do not have to do 1099’s for LLC’s if they are taxed as a C, S or partnership.
You should have a W9 on file for each of your vendors to determine if a 1099 is requried.
So, if Individua/sole proprietor, or sole member LLC (on a W9 the tax classification is blank), then YES to do 1099.
As long as you are doing any, you should have a RECIPIENT’s identification number completed, else IRS may send a penalty notice.
The RECIPIENT’s identification number is usually the social security number but may be the federal ID# of a sole member LLC.
Clear as mudd? I doubt it. Been doing this for over 25 years and I’m still confused!