Yes. An LLC taxed as a partnership does get a 1099-NEC when your business pays it $600 or more for services during the calendar year. The corporate exemption that lets payers skip 1099 reporting applies only to corporations, including LLCs that have elected C-corp or S-corp treatment. Partnerships, including LLCs that default to or elect partnership taxation, are specifically included in the reporting rule.
Why the Partnership Classification Triggers a 1099-NEC
The IRS does not treat “LLC” as a tax status. It treats the LLC’s federal tax election as the controlling fact. A multi-member LLC defaults to partnership taxation unless it files Form 8832 or Form 2553 to elect corporate treatment. Single-member LLCs default to disregarded entity status. Only the C-corp and S-corp elections unlock the general exemption from 1099-NEC reporting.
The IRS General Instructions for Certain Information Returns state that “Reporting is generally required for all payments to partnerships.”1Internal Revenue Service. General Instructions for Certain Information Returns The 1099-NEC instructions set out four conditions that together create a filing obligation: the payment is to someone who is not your employee, it is for services in the course of your trade or business, the recipient is an individual, partnership, or estate (or in some cases a corporation), and you paid at least $600 during the year.2Internal Revenue Service. Reporting Payments to Independent Contractors
A common assumption is that because partnerships file Form 1065 and issue Schedule K-1s to their partners, the income is already captured and a 1099-NEC is redundant.3Internal Revenue Service. About Form 1065, U.S. Return of Partnership Income The IRS does not accept that logic. The exemption line is drawn at corporate status, not at self-reporting.
So if you hire an LLC partnership for consulting, bookkeeping, design, web development, or any other service and your payments total $600 or more during the year, you owe that LLC a 1099-NEC.
Use the W-9 to Confirm the Classification
Before you cut the first check, collect a completed Form W-9. It captures the vendor’s legal name, Taxpayer Identification Number, and federal tax classification, which is the data point you actually need.4Internal Revenue Service. Form W-9, Request for Taxpayer Identification Number and Certification
An LLC taxed as a partnership checks the “Limited liability company” box on line 3a and enters “P” in the tax classification field. A traditional partnership that is not an LLC checks the standalone “Partnership” box. Either way, the W-9 is telling you a 1099-NEC is required when the service payments cross $600. If the LLC entered “C” or “S” on that line, it has elected corporate treatment and the general exemption usually applies.
Guessing is where businesses get into trouble. A vendor’s website, invoices, or email signature will not reliably tell you how it is taxed. Two LLCs can look identical and have opposite 1099 outcomes based solely on an internal election you cannot see.
When an LLC Does Not Get a 1099-NEC
If the W-9 shows the LLC is taxed as a C-corporation or S-corporation, you generally do not issue a 1099-NEC. The IRS instructions carve this out directly: payments to a corporation, “including a limited liability company (LLC) that is treated as a C or S corporation,” are not reportable under the general rule.5Internal Revenue Service. Instructions for Forms 1099-MISC and 1099-NEC
That exemption does not reach partnerships, sole proprietors, or disregarded entities. It also does not reach every type of payment, even when the vendor is a corporation.
Payments That Must Be Reported Regardless of Entity Type
A handful of payment categories override the corporate exemption. If your vendor falls into one of these, entity type stops mattering.
Attorney and Legal Service Payments
Payments of $600 or more to an attorney for legal services are reported on Form 1099-NEC no matter how the law firm is organized. Sole practitioner, partnership, LLC, or full corporation, the reporting obligation is the same. The IRS defines “attorney” broadly to include any law firm or legal services provider.6Internal Revenue Service. Instructions for Forms 1099-MISC and 1099-NEC This is the most common reason a payer ends up issuing a 1099 to a corporate entity it would otherwise skip.
Medical and Health Care Payments
Payments of $600 or more for medical and health care services are reportable on Form 1099-MISC, not 1099-NEC, and the corporate exemption does not apply.7Internal Revenue Service. About Form 1099-MISC, Miscellaneous Information
Federal Executive Agency Payments
Federal executive agencies must report payments for services to corporations on Form 1099-NEC. This exception is narrow and mainly affects government contracting rather than ordinary private businesses.1Internal Revenue Service. General Instructions for Certain Information Returns
The Deadline and What Missing It Costs
Form 1099-NEC must be filed with the IRS and furnished to the recipient by January 31 of the year following payment. No automatic extension is available for the 1099-NEC.8Internal Revenue Service. Form W-2 and Other Wage Statements Deadline Coming Up for Employers
Penalties apply per form and climb the longer you wait. For returns due in 2026:9Internal Revenue Service. Information Return Penalties
- Filed within 30 days of the deadline: $60 per form
- Filed after 30 days but by August 1: $130 per form
- Filed after August 1 or not filed at all: $340 per form
- Intentional disregard: $680 per form
These amounts apply separately to the failure to file with the IRS and the failure to furnish the recipient copy. One missed form can therefore produce two penalties. A business that overlooks the partnership rule across a dozen vendors can accumulate meaningful liability quickly.
If the LLC Won’t Give You a TIN
If a partnership (or any vendor) does not provide a TIN on its W-9, or supplies an obviously invalid one, you must withhold 24% of each payment and remit it to the IRS. This is backup withholding, and it starts with the first payment made without a valid TIN on file.10Internal Revenue Service. Backup Withholding Due to Missing Payee TIN
The withheld amounts are reported and deposited on Form 945, the annual return for withheld federal income tax from nonpayroll payments.11Internal Revenue Service. About Form 945, Annual Return of Withheld Federal Income Tax The IRS runs a free TIN Matching Program that lets payers verify name and TIN combinations against IRS records before filing, which is the simplest way to catch bad data before it becomes a penalty.
The practical rule is simple. Get the W-9 first. Read line 3a. If it says partnership, or shows “P” in the LLC classification field, issue the 1099-NEC when the yearly total hits $600.