I know you have to give independent contractors 1099’s when you pay them over $600 in a year. However, I cannot find a solid definition of what an independent contractor is. I know a corporation is not an independent contractor and does not require a 1099. What about LLC’s (single member disregarded entities and those taxed as corporations)? Are we supposed to look up which entities are which types to determine whether they will get a 1099? It’s not always easy to tell if Joe’s Plumbing Service is a corporation, LLC, sole proprietor, etc. The dental lab I use is an LLC but I don’t know if they are to be considered an independent contractor or not. How many of you send 1099’s to your small dental labs?
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