If you work with freelancers or other businesses, you’ve probably heard of IRS Form 1099-NEC. But if you’re running an LLC, you might be wondering:
Do LLCs receive 1099 forms?
The answer is: It depends on how your LLC is taxed and what services you provide.
In this guide, we’ll break down when LLCs receive 1099s, who needs to send them, and how to handle 1099 reporting as an LLC owner.
What Is a 1099 Form?
A 1099 form is an IRS document used to report non-employee income, such as:
- Independent contractor payments
- Rent payments
- Royalties
- Dividends
- Interest income
The most common version is Form 1099-NEC, which reports payments of $600 or more to non-employees for services.
Do LLCs Receive 1099s?
Yes, some LLCs receive 1099s — but not all.
Whether an LLC receives a 1099 depends on how it’s taxed:
| LLC Type | Should Receive 1099? |
|---|---|
| Single-member LLC (disregarded entity) | Yes |
| Multi-member LLC (partnership) | Yes |
| LLC taxed as S-Corp | No (usually exempt) |
| LLC taxed as C-Corp | No (usually exempt) |
Rule of thumb: If your LLC is taxed as a sole proprietorship or partnership, you should receive 1099s from clients who paid you $600+.
When Does an LLC Receive a 1099?
Your LLC may receive a 1099-NEC form if:
- You provided services (not goods)
- You were paid $600 or more during the calendar year
- You are not taxed as a corporation
- You were paid via cash, check, bank transfer (NOT credit card or PayPal)
Payments made via PayPal, Stripe, or credit cards are reported on Form 1099-K, not 1099-NEC.
Who Is Required to Send a 1099 to an LLC?
Businesses must issue a 1099-NEC to your LLC if:
- They paid you $600 or more for services
- Your LLC is a sole proprietor or partnership
- You are not an S-Corp or C-Corp
- You completed Form W-9 indicating your LLC type
Always provide an accurate W-9 to clients, so they know your tax status.
What If Your LLC Needs to Send 1099s?
If you paid contractors or vendors as an LLC owner, you may be responsible for sending 1099-NEC forms to them.
You must send 1099s if:
- You paid someone $600+ for services
- They are not an employee
- They are not a corporation
- You paid via cash, bank, or check
1099 Filing Deadlines (2025):
- Send to contractors: By January 31, 2025
- File with IRS (paper or e-file): By January 31, 2025
Even if you’re a small LLC, failing to file 1099s can result in IRS penalties.
What Should You Do If You Receive a 1099?
If your LLC receives a 1099-NEC:
- Match the reported income to your internal records
- Report it correctly on your Schedule C (for single-member LLCs) or Form 1065 (for partnerships)
- Store it in your financial records for tax season
Make sure all payments are accounted for — 1099 errors can lead to IRS audits.
Pro Tip: Use a Business EIN and Accurate W-9
To avoid confusion and protect your SSN, always:
- Apply for an EIN for your LLC
- Provide a correct W-9 to clients
- Specify your LLC’s tax classification (Sole Prop, Partnership, S-Corp)
Need Help Forming an LLC or Getting an EIN?
At FormLLC, we provide everything you need:
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Final Thoughts
So, do LLCs receive 1099 forms?
Yes — if they are taxed as a sole proprietorship or partnership.
LLCs taxed as S-Corps or C-Corps typically don’t receive 1099s.
To stay compliant:
- Understand your LLC’s tax classification
- Provide accurate W-9s
- Track all income and 1099s received or sent
Need help forming your LLC, EIN, or BOI report? Trust FormLLC to handle it all — fast, reliable, and affordable.
