When printing Form 1099-Misc for your subcontractor installers, according to IRS instructions, depending on the type of business in which the subcontractor operates, you may be required to print just the individual’s name, or just the business name, or both, along with either the social security number (SSN) of the individual or the employer identification number (EIN) of the business.
In order to know which names to print, you need to have a Form W-9 on file from each installer because on that form is where the installer indicates to you in which type of business he/she operates. And you and your accountant should review the instructions for both Form 1099-Misc and Form W-9.
For the discussion that follows, refer to IRS General Instructions for Certain Information Returns, , section J, "Recipient Names and Taxpayer Identification Numbers (TINs)" (https://www.irs.gov/uac/about-form-1099).
For a sole proprietorship, you should print the individual's name. However, if the installer has a business name, you "may" also print the business name as a DBA below the individual's name, with "DBA" in front of the business name. You may use either the individual's social security number (SSN) or the employer identification number (EIN) of the business, but the IRS prefers that you use the SSN.
If the business is a single-member limited liability company (LLC) that is "disregarded as an entity separate from its owner" (i.e., a "disregarded entity"), you should print the individual's name on the first line, and the business name is required on the second line, and you should use the individual's SSN, or the EIN, if applicable. If the the LLC is taxed as a corporation, partnership, etc, you must use the EIN.
If the business is a C-corporation, S-corporation, or partnership, you should print only the business name and its EIN.
For instructions on how to set up an installer and their business name in QFloors so that you print the correct name(s), see the Knowledge Base article on our website, Printing Installer's Name, or Business Name, or Both on Form 1099-Misc.
