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Glossary

Form 1099-NEC

Also known as: Non-employee compensation

form

The US information return filed by a business that paid $600 or more during the year to a US contractor for services. Due 31 January to both the IRS and the contractor.

Full entry

When it applies to your LLC

If, during the tax year, your US LLC paid any single US-person contractor $600 or more for services (not goods), you file a 1099-NEC for that contractor. The threshold is per-contractor, per-year.

Exceptions

  • Payments to corporations are generally exempt (there are exceptions, including payments to attorneys).
  • Payments to non-US contractors are not on 1099-NEC — they may need Form 1042-S, which is a different track.
  • Payments through card processors are reported by the processor on 1099-K, so you don’t double-report.

Timing

Due 31 January to both the IRS and each contractor. Both deadlines fall on the same day — unlike several other 1099 forms, 1099-NEC has no later IRS-only submission date.

Part of BorderFile’s annual compliance plan; also available as a standalone service.

See also: Form 5472 (unrelated but often prepared in the same window).

This is not tax advice. See the disclaimer.

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