For companies that claim to be an LLC corporation, should they receive a 1099 form or not? We have some conflicting documentation stating that LLCs are NOT corporations (with rare exceptions).


“LLC” is a state-level designation (with the particulars varying by state) and can be structured in a number of ways from a tax classification standpoint. An LLC can be a sole proprietor or a partnership, and can also actually be a corporation.  That’s why the W-9 now asks for tax classification for LLCs.

If the LLC is a corporation, then it comes under the corporate exemption from 1099-MISC reporting. You do not have to report payments made to it if it is a corp.  If they check “S-corp” or “C-corp” on the W-9, you have the documentation that the IRS requires to treat them as a corporation.

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