Do I Send a 1099 to an LLC?

Usually yes. An LLC is exempt from 1099-NEC and 1099-MISC reporting only if it's taxed as a C or S corporation. A single-member LLC that's disregarded for tax, or a multi-member LLC taxed as a partnership, generally gets a 1099 when you pay it $2,000 or more for services in 2026. The payee's Form W-9 tells you which.

Last reviewed September 23, 2026

"LLC" on an invoice tells you how a business is organised under state law. It doesn't tell you how the IRS taxes it, and that's what decides whether you send a 1099. This post shows how to tell, using the contractor's Form W-9, and what to do when you're not sure.

Why doesn't "LLC" settle the question?

The 1099 rules have a corporation exception: payments to corporations are generally not reported on Form 1099-NEC or 1099-MISC. The Instructions for Forms 1099-MISC and 1099-NEC apply that exception to "a corporation (including a limited liability company (LLC) that is treated as a C or S corporation)".

An LLC can be taxed in several ways:

So the question isn't "is it an LLC?" but "how does it tell the IRS it's taxed?".

How do I read the LLC's Form W-9?

Form W-9 (current revision March 2024) asks the payee to check a federal tax classification. On line 3a, an LLC checks the "LLC" box and enters a letter for its tax classification:

• C = taxed as a C corporation → generally no 1099
• S = taxed as an S corporation → generally no 1099
• P = taxed as a partnership → generally a 1099 is required at the threshold

A single-member LLC that's disregarded is told by the form not to check the LLC box. Instead, it checks the box for its owner's classification (usually "Individual/sole proprietor"), with the owner's name on line 1 and the LLC's name on line 2. That's a 1099 payee.

If the W-9 is unclear, ask the contractor to fix it before you pay. Don't guess from the business name.

Which exceptions apply even to LLCs taxed as corporations?

Some payments are reportable even to a corporation, per the Instructions for Forms 1099-MISC and 1099-NEC:

• Attorneys' fees for legal services (1099-NEC) and gross proceeds paid to attorneys (1099-MISC box 10, $600 threshold). A law firm organised as a PLLC or professional corporation still gets a 1099.
• Medical and health care payments (1099-MISC box 6), including to professional corporations.
• Cash payments for fish purchased for resale.

What threshold applies to an LLC contractor?

The same as any other non-corporate payee:

• $2,000 or more in total during 2026 for services (1099-NEC box 1a), rent, prizes and medical payments (1099-MISC).
• $600 or more for payments made in 2025.
• $10 for royalties; $600 for gross proceeds paid to attorneys, in both years.

The total is per payee. If you paid the same LLC several invoices, add them up.

What if I paid the LLC by card or PayPal?

Then you generally don't file a 1099-NEC or 1099-MISC for those payments, whatever the LLC's tax status. Card and payment-app (third-party network) payments are reported on Form 1099-K by the payment company, per the 1099-MISC/NEC instructions. Checks, ACH, wire transfers, cash and bank-to-bank transfers such as Zelle are yours to report. See PayPal, Venmo, Zelle and Cards: Who Files the 1099?.

What if the LLC won't give me a W-9?

• Ask before you pay. The easiest time to get a W-9 is when someone wants to be paid.
• If you don't get a TIN, you generally must start backup withholding at 24% on reportable payments (Pub. 1099 (2026)), and report it.
• Don't assume the corporation exception. Without a W-9 showing C or S corporation status, treat the LLC as a 1099 payee.

A quick worked example

Using our 1099 checker, which applies the same rules:

For 1099-NEC, both the recipient copy and the IRS filing are due February 1, 2027 for 2026 payments.

What about state rules?

States can differ. Some, such as Wisconsin ($600) and Alabama ($1,500), set their own thresholds below the federal $2,000, based on our state research. See the state table in the 1099 filing guide or our state 1099 rules pages.

Keep your contractor list, W-9 status and payment totals in one place with our free Contractor Payment Tracker + 1099 Readiness Sheet. It flags each contractor's likely form and any missing W-9. If you'd rather hand off the whole process, RAHA's per-form 1099 filing service includes W-9 collection and TIN review, e-filing and recipient copies, with the price quoted upfront. See our bookkeeping services.

Frequently asked questions

Do I send a 1099 to a single-member LLC?

Generally yes, unless it has elected to be taxed as a corporation. A disregarded single-member LLC is treated like its owner, usually a sole proprietor.

Do I send a 1099 to an LLC taxed as an S corp?

Generally no, because the corporation exception applies. The exceptions are attorneys' fees, gross proceeds paid to attorneys and medical or health care payments.

Whose name and TIN go on the 1099 for a disregarded LLC?

Generally the owner's name and TIN, as shown on the W-9. The LLC's name can go on the second name line. Follow the W-9 as the payee completed it.

Can I rely on "Inc." or "Corp." in the name?

It's a clue, not proof. Rely on the tax classification on the W-9.

My LLC contractor elected S corp status mid-year. What do I do?

Ask for an updated W-9. Payments made after the election took effect may fall under the corporation exception. If in doubt about earlier payments, get professional advice.

Sources

• IRS, Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026): https://www.irs.gov/pub/irs-pdf/i1099mec.pdf
• IRS, Publication 1099 (2026): https://www.irs.gov/pub/irs-pdf/p1099.pdf
• IRS, Form W-9 (Rev. March 2024): https://www.irs.gov/pub/irs-pdf/fw9.pdf
• IRS, About Form W-9: https://www.irs.gov/forms-pubs/about-form-w-9
• IRC §6041: https://www.law.cornell.edu/uscode/text/26/6041

This guide provides general information for educational purposes and is not tax, legal or accounting advice. Consult a qualified professional before acting.