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1099 Reporting Rules for LLCs Based on Tax Classification
February 18, 2026
Q. I need clarification on what reporting status of the LLC exempts them from getting a 1099 when providing a service.
LLC= partnership = 1099 yes or no when providing a service
LLC= Sole proprietor = 1099 yes or no when providing a service
LLC and marked W9 as a C or S Corporation =1099 yes or no when providing a service
A.
(Answered by IOFM's third-party tax expert)
LLC taxed as partnership = yes, issue a 1099.
LLC taxed as sole proprietorship = yes, issue a 1099.
LLC taxed as a…
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