BIZ OWNERS: The deadline for you to send out 1099 forms is January 31, 2023.
The IRS requires that a Form 1099 be sent to each independent contractor who provided at least $600 worth of services to your business in 2022. This deadline is to ensure that the contractor receives the 1099 in time to include it in her/his/their own tax return to record income generated. The contractor receives a copy AND the IRS receives a copy.
This is important AND there are exceptions (electronic payments) and rules (based on the contractor’s company formation type) so if this is making you nervous, PLEASE take a deep breath and refer to the IRS website and/or contact your accountant for full details.
There are hundreds of things to remember when running a business so I urge you to enlist the advice of experts: tax and legal professionals to ensure that you are compliant with state and federal requirements and are making sound decisions AND specialists like me who have hands on experience starting a business and bringing a product to market from scratch. The investment in expertise is well worth it (and usually costs less time and money than correcting a mistake).
My goal is to make things easier for innovators and entrepreneurs because I have BEEN THERE. In addition to offering personalized guidance on how to launch products and services and run successful Kickstarter campaigns, I guide people on what the first and next steps should be to move forward efficiently and confidently when bringing a business idea to life. I work with clients across industries and scenarios: individuals who wish to monetize a hobby or are not sure how to form a company, start-ups that may be on the fence about retaining an IP attorney for an early product prototype or a company that needs a step-by-step plan for business development.
If you need help, please be in touch with me. I offer various solutions including an introductory “Power Hour” for brainstorming and “tune ups” to make sure that you and your project (at any stage) are on track. Contact me to schedule your complimentary consultation: firstname.lastname@example.org
PS: While I am not a CPA or attorney, I retain both to help me run my businesses so I know the importance of how and when to engage these specialists!