🧾 ANNUAL COMPLIANCE
1099-NEC IRS Filing
for US LLCs
Did your US LLC pay $600 or more to a US contractor this year? Avoid severe IRS penalties. Let us e-file your 1099-NEC forms securely before the January 31st deadline.
The 1099 Requirement
If your US LLC hires US-based freelancers, agencies, consultants, or independent contractors and pays them $600 or more via bank transfer (ACH/Wire) during the calendar year, you are legally required to report these payments to the IRS.
This is done using **Form 1099-NEC** (Nonemployee Compensation). The purpose of this form is to inform the IRS about the contractor's income so the IRS can ensure they pay their taxes. As the business owner, the burden is on you to file this form on time, every year.
Important Rules
- **Deadline:** Must be filed by January 31st each year.
- **W-9 Needed:** You must collect a W-9 from contractors to get their SSN/EIN.
- **Foreign Contractors:** You do NOT file 1099s for non-US contractors.
Skipping Your 1099 Filings
The IRS heavily enforces 1099 compliance. Ignoring this requirement exposes your LLC to direct financial penalties.
Hefty IRS Penalties
Penalties range from $60 to $310 per unfiled 1099 form depending on how late you file. If the IRS determines "intentional disregard," the penalty jumps to a minimum of $630 per form with no maximum cap.
Audit Flags
When you file your annual tax returns and claim contractor expenses, the IRS expects to see matching 1099s. Discrepancies are a major red flag that can trigger a business audit.
Upset Contractors
Your US contractors need the 1099 form from you to file their own personal tax returns on time. Failing to provide it creates friction and unprofessionalism with your US partners.
Hands-Off 1099 Processing
Just give us the data. We handle the IRS portals and the contractor distribution.
Data Verification
We review the W-9 forms and payment totals to ensure all required information is accurate before filing.
IRS E-Filing
We electronically file the 1099-NEC forms directly with the IRS using authorized transmitter software.
Contractor Distribution
We securely email the required Copy B of the 1099 form to your contractors so they can file their taxes.
State Filing Coordination
If applicable, we ensure the information is routed to states participating in the Combined Federal/State Filing Program.
Confirmation Records
We provide you with the IRS acceptance confirmation and PDF copies of all filed forms for your corporate records.
1099-MISC Support
If you made payments for rent or royalties, we can also file Form 1099-MISC under the same service.
Pay Per Contractor
PER 1099 FORM FILED
Flat rate includes IRS e-filing and distributing the form to the contractor via secure email.
How We Get You Setup
A simple process done well before the January 31st deadline.
Submit Data
Send us the W-9 forms for your contractors and the total amount paid to each during the year.
Data Verification
We verify the TIN and details to prevent IRS mismatches and errors.
Draft Review
We prepare the forms and provide a summary for your final approval.
IRS E-Filing
We transmit the forms electronically to the IRS system.
Distribution
We send the finalized copies to your contractors and provide you the confirmation logs.
Who Needs a 1099-NEC?
If your LLC paid $600 or more in the year, consider these categories.
Freelancers
Web developers, designers, or writers based in the US who act as independent contractors for your LLC.
Service Agencies
US-based marketing agencies or consulting firms (unless they are registered as a C-Corp or S-Corp).
Professionals
Attorneys, accountants, or registered agents that provided professional services to your business.
Frequently Asked Questions
Form 1099-NEC (Nonemployee Compensation) is an IRS form used to report payments made by a trade or business to independent contractors, freelancers, or sole proprietors. If your US LLC pays a US-based contractor $600 or more during the year, you must file this form.
Any US business entity, including foreign-owned single-member LLCs, that pays $600 or more in a calendar year for services to a non-employee (contractor) who is a US tax resident must file Form 1099-NEC.
No. You only issue 1099s to US persons (citizens, residents, or US entities). For foreign contractors performing work outside the US, you should collect a Form W-8BEN from them to prove they are not US tax residents, but you do not file a 1099 for them.
The IRS deadline to file Form 1099-NEC and furnish a copy to the contractor is January 31st of the year following the payment year. Extensions are generally not granted for this form.
You need their legal name (or business name), their address, and their Taxpayer Identification Number (SSN or EIN). You should always request this information by having the contractor fill out a Form W-9 before you pay them.
The IRS imposes steep penalties for failure to file informational returns. The penalty can range from $60 to $310 per form depending on how late it is, and can be even higher if the IRS determines the failure was intentional.
Generally, no. If you paid the contractor via credit card, PayPal, or a third-party settlement organization, those platforms are responsible for issuing a Form 1099-K. You only issue a 1099-NEC for direct payments like wire transfers, ACH, cash, or checks.
1099-NEC is specifically for reporting nonemployee compensation (freelance work). 1099-MISC is used for other types of miscellaneous income, such as rent payments, royalties, or prize winnings.
Yes. Even if you are a non-US resident owner of a Wyoming LLC and you don't owe US income tax yourself, your US LLC is still a US business entity and must comply with IRS reporting rules for payments made to US contractors.
You provide us with the W-9s of your contractors and the total amount paid to each. We prepare the 1099-NEC forms, e-file them securely with the IRS, and email/mail the required copies to your contractors.
Yes, we handle the mandatory e-filing with the IRS through authorized tax software, which is faster, more secure, and ensures you receive filing confirmations.
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DEADLINE IS JANUARY 31ST
Don't Risk IRS Penalties.
File Your 1099s Today.
Protect your US company and maintain professional relationships with your contractors. Let us handle the tax portals while you focus on business.