In general, you will need to send 1099s to anyone you have paid $600 or more for rents, services (including parts and materials), prizes and awards or other income payments made for business purposes. Recipients can include any individual, partnership, Limited Liability Company, Limited Partnership or Estate.

Some common exceptions (people or businesses you don’t need to send 1099’s to) include corporations, real estate agents, property managers, or sellers of merchandise, freight, storage, etc. You do need to send a 1099 to any lawyer you paid $600 or more to, even if they are incorporated.

A best practice for this season is to make your list, check it twice, and collect W-9 information for the people and businesses you don’t already have the social security/federal employer identification/taxpayer identification number and address for.