Does An S Corp Get 1099?

  • Tax

S corporations generally do not receive 1099 forms (1099-NEC or 1099-MISC) for services they provide. The IRS exempts payments to corporations from 1099 reporting, unlike payments to individuals, sole proprietors, partnerships, or LLCs taxed as partnerships. However, there are important exceptions: S corporations must still receive 1099s for certain types of payments, such as attorney’s fees, medical and healthcare payments, and other specific categories required by the IRS. In short, if you pay an S corp for ordinary services like consulting, design, or construction, no 1099 is needed—unless the payment falls under one of the exception categories.

R&D Offer Quiz

Step 1 of 3

Answer to find out if you're eligible for R&D tax credits.

Do the activities performed relate to a new or improved business component’s function, performance, reliability, quality, or composition?(Required)
For Example: A mid-sized packaging company develops a slightly modified cardboard box design to improve its stacking strength (reliability) for warehouse storage, involving minor adjustments to the corrugation pattern to reduce collapse under standard weight loads.
Is your company trying to discover information to eliminate uncertainty concerning the capability or method for developing or improving a business component?(Required)
For Example: A furniture manufacturer investigates whether a cheaper wood adhesive can hold joints as effectively as the current one during assembly, testing bond strength to resolve doubts about its capability in standard production lines.
Do the activities performed constitute a process of experimentation?(Required)
For Example: An auto parts supplier runs a series of bench tests on different lubricant formulations to find one that reduces friction in engine bearings more effectively, systematically comparing wear rates over simulated operating cycles.