1099 Basics for Small Businesses: Who Needs One & How to Prepare

Resources mentioned: An update article on 1099s by the Dancing Accountant: https://www.msn.com/en-us/news/other/when-do-i-have-to-issue-a-1099-form-to-someone-i-paid/ar-AA1m4Ubf End-of-year 1099 season is here! In this video, Hannah covers everything you need to know about issuing 1099s as a small business owner. Learn who needs to receive a 1099, how to prepare, and the key differences between 1099-MISC and 1099-NEC forms. In this video you will find: 0:00 Intro 1:58 What is a 1099? Explanation & Purpose 2:18 Key Forms: 1099-NEC vs. 1099-MISC 2:53 Why Issuing 1099s is Crucial 3:35 Overview of 1099-MISC Reporting Categories 5:07 Overview of 1099-NEC Reporting Categories 6:24 Filtering Vendors for 1099 Requirements 7:13 Introducing the Decision Tree for 1099s 9:47 Importance of Collecting W-9s 10:22 Reviewing W-9s for Entity Classification To learn more about CFO services for B2B services providers making over $1M in annual revenue, go to: https://claracfo.com/services Here are some of the tools I trust and recommend to help you manage your business finances more effectively. These are affiliate links, which means I may earn a small commission if you use them—at no extra cost to you. Thank you for supporting the Clara CFO channel! 🔢 QuickBooks Online – 30% Off for 12 Months plus 30-day Free Trial https://claracfo.com/QBO Get organized with the most popular small business accounting software. 🏦 Relay Bank – Get a $100 Bonus https://www.claracfo.com/relay Modern banking designed for business owners. Sign up and deposit $100 to claim your bonus. 👥 Gusto Payroll – Earn $100 https://claracfo.com/gusto Run payroll and receive a $100 reward—perfect for growing teams. 💰 Monarch Money – Extended 30-Day Free Trial https://claracfo.com/monarch Smart personal finance software for entrepreneurs and families. 📊 RC Reports – Get $50 Off a Compensation Report https://claracfo.com/RCReports Ensure your S-Corp salary is IRS-compliant with a professional comp report. Hannah Smolinski is a #CPA and the Founder of Clara CFO Group. Find out more about Clara CFO Group at https://claracfo.com/ Disclaimer: This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience.