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1099 Reporting When a Vendor Switches from Sole Proprietor to S Corp
August 14, 2026
Q. Is a 1099 required for a business when they change their federal tax classification on their W-9 from a sole proprietorship to an LLC S Corp. during the year?
A.
Answered by IOFM's third-party tax expert.
You would send a 1099 for any payments during the year to the sole proprietorship. Any payments issued to the S corp would not be reported, based on the corporate exception to reporting.
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