The short answer is, it depends. File a 1099 form if an advertising agency creates an ad or runs an ad for your business, and you paid them $600 or more in the previous tax year. The Internal Revenue Service considers many advertising agencies as independent contractors. A business must send 1099 forms to the contractors if they provide a business with a service that meets or exceeds the minimum $600 threshold. An ad is a product, but you should remember that the cost of creating and applying ads is a service. Check the corporation status of any agency that creates your ad. A typical ad agency may be different from a company like a newspaper, which may have a parent company that is a corporation. Do not send 1099 forms to corporations.