Yes, you oftentimes should file a 1099 form for payments that you make to a marketing agency. There are times when the Internal Revenue Service will not object to you not issuing the Form 1099-MISC or Form 1099-NEC.
When you complete a Form 1099-NEC for marketing contractors:
- Make sure they provided you with services during a tax year that equal or exceed $600
- Check to make sure the marketing agency is not classified as a corporation
The IRS allows businesses to skip filling out Form 1099-NEC if they classified the paid company as a business structure, like an S-Corporation or C-Corporation. Request that an agency submit a Form W-9 to you so that you can confirm whether they are incorporated.
Businesses that want to become an S-Corporation in 2026 must submit Form 2553, Election by a Small Business Corporation with signatures from all of the business’s shareholders.
People Also Ask
- Can I file a 1099 form for payments made to an S-Corporation? – No, because the IRS regards businesses that are classified either as an S-Corporation or C-Corporation as a separate legal entity.
- Is 1099 or W-2 software better for small businesses? – Knowing the type of worker that you hired or plan to hire is the best way to determine the software that you get for your business. Some businesses prefer having a complete database system like AMS that generates different 1099s, W-2s, and related forms.
Enter and store data easily for a variety of 1099 forms with our W-2/1099 Forms Filer. Download our free 1099-etc Demo software to explore our core product and add-on module that lets users print most forms to plain white paper.