Do I issue a 1099 to a individual or company based on their legal entity or the way they are taxed? For instance, an LLC that is taxed as an C Corporation, does that require a 1099 if the monies paid are in excess of $600?

ANSWER

The BIDaWIZ Team's Answer:

You would issue a 1099 based on their legal entity type as per the instructions for information returns on the IRS website.  Almost all payments to partnerships are required to be reported on 1099s where as most payments to corporations are not required to be reported on 1099s.  Your requirement to avoid a penalty for failing to file would be based on the entity's legal type and not the method of filing for income taxes because that can and will vary based upon decisions and information that are not available to you as the informational return filer.