Do I have to send a 1099-NEC to an LLC?

It depends on how the LLC is taxed, which is exactly why you need a W-9 on file. A single-member LLC or a partnership-taxed multi-member LLC is treated like an individual for this purpose, so you do send a 1099-NEC if you paid it $2,000 or more for services in 2026. But an LLC that elected S-Corp or C-Corp status is treated as a corporation, and corporations are generally exempt. The one exception is legal services: an attorney or law firm gets a 1099-NEC even when it is incorporated.

What is the 1099 reporting threshold for 2026?

For payments made in 2026, you must file a 1099-NEC once you have paid a contractor $2,000 or more for the year. That is a change from the long-standing $600 threshold, raised by the 2025 tax law and effective for payments made on or after January 1, 2026. The $2,000 floor will be adjusted for inflation in future years. Note the timing: the 1099s you sent in January 2026 covered 2025 payments and still used the old $600 rule.

When is the 1099-NEC deadline?

January 31. Unlike most tax forms, the same date applies to both copies — the one you give the contractor and the one you file with the IRS are both due January 31. When that date falls on a weekend the deadline moves to the next business day, so 1099-NECs for 2026 payments are due February 1, 2027. It is an early, firm deadline, which is why I get my clients set up months ahead rather than in the last week of January.

What happens if I file a 1099-NEC late or not at all?

The IRS charges a penalty per form that grows with time. For returns due in 2026, it is $60 per form if you fix it within 30 days, $130 if by August 1, and $340 after that or if you never file — plus a heavier penalty for intentional disregard. The penalty can apply twice for the same contractor: once for the IRS copy and once for the recipient copy. There is an annual cap, lower for small businesses, but the per-form amounts add up quickly, so filing on time or correcting fast is what keeps the cost near zero.

Do I file a 1099 for a contractor I paid through PayPal or a credit card?

No. Payments made by credit card, debit card, or a third-party payment network like PayPal or Venmo are reported by the payment processor on a Form 1099-K, not by you on a 1099-NEC. Sending a 1099-NEC for those payments would double-report the same income. This is one more reason to track how you pay each contractor: only your check, cash, and direct-transfer payments for services count toward the $2,000 threshold that triggers a 1099-NEC from you.

Does Florida require me to file 1099s with the state?

No. Florida has no state personal income tax, so there is no separate state-level 1099 filing the way there is in states like California or New York. Your 1099-NEC obligation is purely federal — you file with the IRS and you are finished. Every other rule, though — the $2,000 threshold, the January 31 deadline, the corporation and attorney exceptions, and the penalties — is federal and applies to Florida businesses exactly as it does anywhere else.

Filing 1099-NEC Forms: A Florida Business Owner's Guide

Filing 1099-NEC Forms: What Every Business Owner OwesBy Timothy LeGendre, CPA · Florida License #AC62625 · Last reviewed 2026-07-02A Florida CPA's guide to filing Form 1099-NEC — who gets one, the new $2,000 threshold, the January 31 deadline, W-9s, and late-filing penalties.If your business pays an independent contractor for services, you generally file a Form 1099-NEC with the IRS and send the contractor a copy by January 31. For payments made in 2026 the reporting threshold is $2,000 — raised from the long-standing $600 by the 2025 One Big Beautiful Bill Act, effective for payments on or after January 1, 2026, and inflation-indexed after that; payments made in 2025 still used the $600 rule. Corporations are generally exempt, but an attorney gets a 1099-NEC even when incorporated, and payments made by card or a third-party app like PayPal are reported on a 1099-K instead. Collect a W-9 before you pay anyone: it supplies the legal name, taxpayer ID, and entity type, and a missing TIN forces 24% backup withholding. Late or missing forms cost $60 to $340 each for returns due in 2026, and the penalty can apply twice per contractor — once for the IRS copy, once for the recipient copy. Because Florida has no state income tax, there is no separate state 1099 filing; the obligation is purely federal.

Frequently asked questions

Do I have to send a 1099-NEC to an LLC?: It depends on how the LLC is taxed, which is exactly why you need a W-9 on file. A single-member LLC or a partnership-taxed multi-member LLC is treated like an individual for this purpose, so you do send a 1099-NEC if you paid it $2,000 or more for services in 2026. But an LLC that elected S-Corp or C-Corp status is treated as a corporation, and corporations are generally exempt. The one exception is legal services: an attorney or law firm gets a 1099-NEC even when it is incorporated.
What is the 1099 reporting threshold for 2026?: For payments made in 2026, you must file a 1099-NEC once you have paid a contractor $2,000 or more for the year. That is a change from the long-standing $600 threshold, raised by the 2025 tax law and effective for payments made on or after January 1, 2026. The $2,000 floor will be adjusted for inflation in future years. Note the timing: the 1099s you sent in January 2026 covered 2025 payments and still used the old $600 rule.
When is the 1099-NEC deadline?: January 31. Unlike most tax forms, the same date applies to both copies — the one you give the contractor and the one you file with the IRS are both due January 31. When that date falls on a weekend the deadline moves to the next business day, so 1099-NECs for 2026 payments are due February 1, 2027. It is an early, firm deadline, which is why I get my clients set up months ahead rather than in the last week of January.
What happens if I file a 1099-NEC late or not at all?: The IRS charges a penalty per form that grows with time. For returns due in 2026, it is $60 per form if you fix it within 30 days, $130 if by August 1, and $340 after that or if you never file — plus a heavier penalty for intentional disregard. The penalty can apply twice for the same contractor: once for the IRS copy and once for the recipient copy. There is an annual cap, lower for small businesses, but the per-form amounts add up quickly, so filing on time or correcting fast is what keeps the cost near zero.
Do I file a 1099 for a contractor I paid through PayPal or a credit card?: No. Payments made by credit card, debit card, or a third-party payment network like PayPal or Venmo are reported by the payment processor on a Form 1099-K, not by you on a 1099-NEC. Sending a 1099-NEC for those payments would double-report the same income. This is one more reason to track how you pay each contractor: only your check, cash, and direct-transfer payments for services count toward the $2,000 threshold that triggers a 1099-NEC from you.
Does Florida require me to file 1099s with the state?: No. Florida has no state personal income tax, so there is no separate state-level 1099 filing the way there is in states like California or New York. Your 1099-NEC obligation is purely federal — you file with the IRS and you are finished. Every other rule, though — the $2,000 threshold, the January 31 deadline, the corporation and attorney exceptions, and the penalties — is federal and applies to Florida businesses exactly as it does anywhere else.