USA Independent Contractor Paying A Corporation

[teknon]

I am a nail technician. I am considered an independent contractor. According to my contract, I pay the corporation for which I work. For instance out of the payments received for services, I pay the company 60% and take 40% (that is how the contract is written). Does that mean I am to send the company an 1099 form? Am I to obtain a W-9 form from the company?

I thought they were paying me 40% and they were taking 60%, but upon reading the contract again, I see it is the other way around. Now I am confused. Please help.

I live in Michigan.

 

[Marshall]

Generally, you do not need to report payments to a corporation on a form 1099-MISC except for a few particular types of payments (for example, medical and health care payments, fish purchases, attorney fees, etc...).

If you are certain that the payee is a corporation (and not an LLC or partnership), then you probably will not need to file. Getting a W-9 will protect you from making a wrong conclusion about the type of entity, so I recommend getting one in this case.