Do Corporations Get 1099s? (C-Corps, S-Corps, and LLC Rules)

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Meta Description: C-Corps and S-Corps generally don't get 1099s for services, but exceptions apply. Learn when corporations must receive Form 1099-NEC or 1099-MISC.

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      "text": "C-Corporations and S-Corporations generally do not receive Form 1099-NEC for services performed. However, corporations must receive 1099s for: (1) medical and health care payments, (2) attorney fees and legal settlements, (3) gross proceeds paid to attorneys, (4) fish purchases for cash, and (5) substitute payments in lieu of dividends or tax-exempt interest. Additionally, LLCs taxed as corporations follow the same rules as corporations, but LLCs taxed as partnerships or sole proprietors do receive 1099s. Always request a W-9 to determine the entity's tax classification before deciding whether to issue a 1099."
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H1

Do Corporations Get 1099s?

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ANSWER SECTION

C-Corporations and S-Corporations generally do NOT receive Form 1099-NEC for services they perform for your business. This is one of the most common 1099 misconceptions. However, there are important exceptions where corporations must receive 1099s: medical and health care payments of $600 or more, attorney fees regardless of the attorney's entity type, gross proceeds paid to attorneys, fish purchases for cash, and substitute payments in lieu of dividends or tax-exempt interest. Additionally, LLCs taxed as corporations follow the same 1099 exemption rules as C-Corps and S-Corps, but LLCs taxed as partnerships or sole proprietorships DO require 1099s. In 2025, the safest practice is to always request a Form W-9 from any vendor before making payments to definitively determine their tax classification and 1099 requirements.

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H2: The General Rule: Corporations Are Exempt

Form 1099-NEC reporting: Payments for services to C-Corporations and S-Corporations are generally exempt from 1099-NEC reporting requirements.

Why corporations are exempt:

• Corporations already have comprehensive tax reporting through corporate tax returns (Form 1120 or 1120-S)
• The IRS can track income through the corporate EIN
• The burden of issuing 1099s to corporations was deemed unnecessary

What this means: If you hire a corporation to provide services (web design, consulting, cleaning, etc.), you typically do not need to issue a 1099-NEC, even if you pay them $600 or more during the year.

Important: The exemption applies to the entity type, not the payment amount. Even payments of $10,000+ to a corporation for services don't require a 1099-NEC (with the exceptions noted below).

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H2: Exceptions: When Corporations DO Need 1099s

Despite the general exemption, corporations must receive 1099s in these situations:

1. Medical and health care payments (Form 1099-NEC or 1099-MISC):

• Payments of $600+ to corporations providing medical or health care services
• Includes doctors, dentists, medical labs, hospitals
• Applies regardless of the provider's corporate status

2. Attorney fees (Form 1099-NEC):

• Payments of $600+ to attorneys for legal services
• Required even if the attorney is incorporated
• Report in Box 1 of 1099-NEC

3. Gross proceeds to attorneys (Form 1099-MISC):

• Gross proceeds paid to attorneys in settlement agreements
• Report in Box 10 of 1099-MISC

4. Substitute payments (Form 1099-MISC):

• Substitute payments in lieu of dividends or tax-exempt interest
• Report in Box 8 of 1099-MISC

5. Fish purchases (Form 1099-MISC):

• Payments for fish purchased from anyone engaged in the trade of catching fish
• Report in Box 11 of 1099-MISC

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H2: C-Corp vs S-Corp 1099 Rules

Both C-Corporations and S-Corporations follow the same 1099 rules:

Payment Type	C-Corp Gets 1099?	S-Corp Gets 1099?
Services (general)	No	No
Medical/health care	Yes	Yes
Attorney fees	Yes	Yes
Gross proceeds to attorneys	Yes	Yes
Fish purchases	Yes	Yes
Substitute payments	Yes	Yes
Rent	No	No
Royalties	No	No

Key point: There is no difference in 1099 treatment between C-Corps and S-Corps. Both are generally exempt for services, and both are subject to the same exceptions.

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H2: LLCs and 1099 Requirements

LLCs create confusion because their tax classification determines 1099 requirements:

LLCs taxed as corporations:

• Treated same as C-Corps and S-Corps
• No 1099-NEC required for services (except exceptions)
• Request W-9 to confirm corporation taxation

LLCs taxed as partnerships:

• DO require 1099-NEC for services of $600+
• Very common for small businesses
• Most single-member LLCs with multiple owners are partnerships

LLCs taxed as sole proprietors (disregarded entities):

• DO require 1099-NEC for services of $600+
• Single-member LLCs default to this status
• Owner reports on Schedule C

How to know an LLC's classification: The only reliable way is to request Form W-9 from the LLC. Box 3 will show their federal tax classification:

• "C Corporation" or "S Corporation" = No 1099 for services
• "Partnership" or "Single-Member LLC" = 1099 required

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H2: Best Practices for 1099 Compliance

Always request Form W-9 before first payment:

• W-9 provides the vendor's legal name, address, and TIN
• Box 3 indicates tax classification
• Box 4 confirms exemption from backup withholding

Verify the information:

• Don't assume based on the company name ending in "Inc." or "Corp"
• Some incorporated businesses are actually LLCs electing corporate status
• When in doubt, issue the 1099—there's no penalty for unnecessary 1099s

1099 thresholds (2025):

• Services (1099-NEC): $600 or more
• Rent (1099-MISC): $600 or more
• Royalties (1099-MISC): $10 or more
• Medical payments (1099-NEC): $600 or more
• Attorney fees (1099-NEC): Any amount

Deadlines:

• Send to recipients: January 31, 2026 (for 2025 payments)
• File with IRS: January 31, 2026 (if filing electronically or on paper)

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H2: Related Tax Questions

Learn about S-Corp specific 1099 rules in our guide on whether an S Corp gets a 1099 with the exception rules explained.

Understand LLC 1099 requirements in our guide on whether an LLC gets a 1099 covering tax classification impacts.

Learn about partnership 1099 rules in our guide on whether partnerships get 1099s with general partnership and LLP guidance.

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