If a vendor is an LLC but marks the W-9 as LLC (C-corp or S-corp) are we required to report payments over $600 to the IRS on a 1099-MISC? Thanks.


It depends on the nature of the services. An LLC is not a tax classification, which is why the vendor must also designate its tax classification.

If the vendor has indicated it is a C-corp or S-corp, it is exempt from reporting unless it is an attorney practice, or provider of medical services. Attorneys and medical services are the two exceptions to the corporate exemption, and you must report such payments if $600 or more.

But otherwise payments to a corporation (C or S) are exempt from reporting.

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