Right after the holidays, small businesses have a lot on their plate – W-2’s and 1099’s are due soon, and so are final quarter self employment tax payments!

Question: Recently, a client asked: “Do I need to send OG+S a 1099 for services?” and because it was such a great question, it naturally became the topic of this week’s blog post – read on for the answer:

Short Answer: Yes, payments over $600 made to an attorney for legal services need to be reported on a 1099-NEC. (See Payments to Attorneys)

Long Answer: Generally, you need to issue 1099’s to entities taxed as partnerships for services (like LLC’s electing standard tax treatment) but do not need to issue 1099’s to Corporations (including S-Corporations). There are exceptions, however (like payments to attorneys for legal services) when a 1099 has to be issued regardless of the legaltax classification of the organization.

The holidays are over, but the fun [paperwork] is just beginning! Send us a 1099, we can’t wait to get it!