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Business1099 Help Chart
By apaddict123
Category: Business. Viewed 1808 times. Created November 2015.     Disclaimer.   
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This flowchart will help the decision process to determine which vendors require a 1099.

               
Did this vendor perform a service, provide medical treatment/services, or provide legal advise for you or your business? Or did you pay rent to them?
YES
Was the value of all services performed or rents paid during the past year $600 or more?
YES
Is this an individual as opposed to a company?
NO
Does the name of the company end in INC?
NO
You must have a W-9 to determine if a 1099 is needed. Go to the next chart.

NO


NO


YES


YES


You do not have to send a 1099 Misc.
Was the vendor an attorney or provide legal advise?
YES
You must send the vendor a 1099 Misc. Also,set the vendor as a 1099 vendor in Profund.
You do not need to send a 1099 Misc unless the vendor is an attorney or provides medical services. Also, the vendor will need to be set up as a 1099 vendor.
 



NO






 
You do not need to send a 1099 Misc.
 
 
 









Use this section after completing the first section to determine if a 1099 Misc is needed. Do you have a W-9 on file for the vendor in question?
YES
Is LLC checked on the top portion of the W-9?
YES
Does the space on the line, to the right of the LLC check mark have a letter in it?
YES
Is the letter a P?
NO
You are not required to send a 1099 Misc for S or C Corp unless the vendor is an attorney or provides medical services/treatment.

NO


NO


NO


YES


You must have a W-9 to continue.
Is C Corp or S Corp checked?
You need to request another W-9 from the vendor. The W-9 form is either incomplete or an old W-9 form. The safest thing is to send a 1099 Misc.
You must send a 1099 Misc only for services including medical, legal advise, or rent.
This vendor needs to be set up as a 1099 vendor in Profund. The AP clerk will un-check in payable if not for services including medical, legal advise, or rent.



NO

YES





 
If Parternership is selected, a 1099 Misc is needed for any services including medical, rent, or is an attorney. Otherwise, a 1099 isn't needed.
A 1099 Misc isn't needed for C Corp or S Corp EXCEPT if the vendor provides legal advise or medical services/treatment.