{"id":2946,"date":"2026-09-23T10:24:42","date_gmt":"2026-09-23T10:24:42","guid":{"rendered":"https:\/\/www.1099online.com\/blog\/?p=2946"},"modified":"2026-09-23T10:24:42","modified_gmt":"2026-09-23T10:24:42","slug":"do-s-corps-get-1099","status":"publish","type":"post","link":"https:\/\/www.1099online.com\/blog\/do-s-corps-get-1099\/","title":{"rendered":"Do S Corps Get A 1099? 1099 Rules for S Corporations in 2026 TY"},"content":{"rendered":"

What Is an S Corporation, and Does an S Corp Get a 1099?<\/h2>\n

An S corporation, often abbreviated as an S corp, is a business that has elected to be taxed under Subchapter S.<\/p>\n

Subchapter S is a section of the Internal Revenue Code that lets qualifying corporations elect S corporation status, so that their income, losses, deductions, and credits are not taxed at the corporate level. Instead, they pass through to the shareholders, who report their share on their individual returns.<\/p>\n

When it comes to 1099 reporting, the business is simply a corporation, and corporations sit outside the reporting rules. If you pay an S corporation $10,000 for routine consulting work, the corporate exemption generally covers it, so no filing is required.<\/p>\n

However, the corporate reporting exemption does not apply to every payment. Legal services, medical and health care payments, attorney gross proceeds, and certain other transactions may still be reportable even though the recipient is an S corporation.<\/p>\n

When Should A Form 1099 Be Issued To An S Corporation?<\/h2>\n

Some payments to S corporations remain reportable regardless of who receives them. This is an important part of the 1099 for S corporation rules. The table below shows which payments may still require reporting.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
Payment or transaction<\/th>\nIs a Form 1099 Required?<\/th>\nIf Yes, Which Form?<\/th>\n<\/tr>\n
Regular contractor or professional services<\/td>\nNo<\/td>\nNot applicable<\/td>\n<\/tr>\n
Fees for legal services<\/td>\nYes, for qualifying payments of $2,000 or more<\/td>\nForm 1099-NEC<\/td>\n<\/tr>\n
Medical or healthcare-related payments<\/td>\nYes, for qualifying payments of $2,000 or more<\/td>\nForm 1099-MISC<\/td>\n<\/tr>\n
Gross proceeds to the attorney<\/td>\nYes, for qualifying payments of $600 or more<\/td>\nForm 1099-MISC<\/td>\n<\/tr>\n
Cash payments for fish purchased for resale<\/td>\nYes, for qualifying payments of $600 or more<\/td>\nForm 1099-MISC<\/td>\n<\/tr>\n
Substitute payments instead of dividends or tax-exempt interest<\/td>\nYes, for qualifying payments of $10 or more<\/td>\nForm 1099-MISC<\/td>\n<\/tr>\n
Card payments or third-party network transactions<\/td>\nSeparate rules may apply<\/td>\nForm 1099-K<\/td>\n<\/tr>\n
Broker or barter transactions<\/td>\nSeparate rules may apply<\/td>\nForm 1099-B<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

For 2026 TY, the federal reporting threshold increased from $600 to $2,000 for certain qualifying payments, including attorney service fees and medical and health care payments. Every other payment type kept its existing threshold.<\/p>\n

Form 1099-K also operates under its own rules. A third-party settlement organization reports payments once the gross payments are $20,000 or more, and the transaction count exceeds 200. Payment card transactions remain reportable at any amount.<\/p>\n

What Form W-9 Tells You About a Vendor<\/h2>\n

Federal tax classification cannot be established from an invoice. Before deciding whether a form is required, a payer needs to know how the vendor is classified for federal tax purposes. This requires a Form W-9.<\/p>\n

A completed W-9 from the payee gives you the payee\u2019s name, the business name if required, the federal tax classification, the taxpayer identification number (TIN), and any exemption information that applies. An S corporation identifies its classification on Line 3a.<\/p>\n

This is especially important for LLCs or limited liability companies. An LLC can elect to be taxed as an S corporation, so seeing an \u201cLLC\u201d in a vendor’s name does not by itself indicate how the business is classified for federal tax purposes.<\/p>\n

Do LLCs taxed as S corps get a 1099?<\/h4>\n

Like with any other S corporation, LLCs taxed as an S corporation require 1099 reporting only when an exception applies.<\/p>\n

Do S Corporations Issue 1099s?<\/h2>\n

An S corporation may be exempt from most reporting requirement as a recipient, but it can still carry reporting obligations as a payer.<\/p>\n

Where an S corporation makes reportable business payments, those can include money paid to independent contractors, freelancers, partnerships, attorneys, medical and health care providers, landlords, and other reportable recipients; it may need to issue Forms 1099.<\/p>\n

The S corporation should collect documentation such as Form W-9 from each vendor, then review the classification and the payment type before deciding whether a form is required.<\/p>\n

What About Shareholders Who Work in the Business?<\/h4>\n

A shareholder who performs services as an employee of the S corporation receives wages, and those wages are reported on Form W-2 rather than Form 1099-NEC.<\/p>\n

Shareholder distributions are different from independent contractor payments and are not reported as nonemployee compensation. However, a shareholder-employee must get reasonable compensation for services before receiving nonwage distributions.<\/p>\n

Filing Deadlines for 2026 TY Forms<\/h2>\n\n\n\n\n\n
Form<\/th>\nFurnishing Recipient Copy<\/th>\nElectronic Filing<\/th>\nPaper Filing<\/th>\n<\/tr>\n
Form 1099-NEC<\/td>\nFebruary 1, 2027*<\/td>\nFebruary 1, 2027*<\/td>\nFebruary 1, 2027*<\/td>\n<\/tr>\n
Form 1099-MISC<\/td>\nFebruary 1, 2027*
\nFebruary 15, 2027, for amounts reported in Boxes 8 or 10<\/td>\n		March 31, 2027<\/td>\nMarch 1, 2027*<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Note: If a deadline (January 31 or February 28) falls on a weekend or holiday, the deadline moves to the next business day.<\/p>\n

How 1099Online Helps With S Corp 1099 Filing<\/h2>\n

1099Online is an IRS-authorized e-file provider with features that help S corporations handle vendor information and reporting.<\/p>\n