If a company is incorporated but is listed as an Ltd., should it receive a 1099?


Ltd. is typically a common form of incorporation in the United Kingdom and in Commonwealth countries. It is much less common in the United States. However, Texas has a Ltd. designation for corporations and as such, payments to them are not reportable. However, in some states there is a slightly different designation: “Ltd. Co.” Ltd. Co. is actually equivalent to “LLC,” for which payments are reportable in most cases. Find out in which state the company is incorporated and check with that state as to the meaning of its form of Ltd. incorporation. (Contact that state's Secretary of State office for that information).

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