1099s for Startups: The Complete 2025 Guide for Founders

Описание: Founders: Learn everything about 1099s for startups in 2025. Which forms to file, deadlines, who gets them, and how to avoid IRS penalties in one complete guide.

1099s for Startups: The Complete Guide for Founders 

 


🚀 Founders: Think 1099s Don’t Apply to You? Think Again.

You’re paying freelancers. You’ve hired a lawyer. Maybe you paid a marketing agency or even gave out some interest to an investor.
The IRS wants to know about those payments.

Enter the 1099 series - forms that report payments you make outside of payroll.
Miss filing them? You’re looking at penalties and IRS letters you don’t want to open.

Here’s everything founders need to know about 1099s: the types, who gets them, when to file, and how to stay compliant.


🧾 What Is a 1099?

The IRS uses Form 1099 to track payments you make to non-employees.
Think of it as the IRS saying:

“Hey, if you paid someone money and didn’t withhold taxes, tell us about it.”

There are different types of 1099s, and yes, startups can trigger more than one.


 

✅ The Most Common 1099s Startups Should Know


1. 1099-NEC (Non-Employee Compensation)

This is the big one for startups.

🔗 Learn more: 1099-NEC Filing Guide for Startups


2. 1099-MISC (Miscellaneous Income)

This covers other payments that don’t fit into “compensation.”


3. 1099-INT (Interest Income)


4. 1099-DIV (Dividends)


5. 1099-B (Proceeds from Broker Transactions)


6. 1099-R (Retirement Distributions)


7. 1099-K (Third-Party Payment Network Transactions)


 

❗ Who Doesn’t Get a 1099?


 

📅 1099 Deadlines for Startups in 2025

Form What It Reports Due Date
1099-NEC Non-employee compensation January 31
1099-MISC Rent, awards, legal fees, etc. January 31
1099-INT Interest payments January 31
1099-DIV Dividends January 31
1099-B Broker transactions January 31
1099-K Third-party payment reports January 31

 

🛠 How to Stay Compliant (Without Losing Your Mind)

  1. Collect W-9s from contractors before paying them.

  2. Track payments throughout the year (not in January panic mode).

  3. Use e-file software (Track1099, Gusto, or your payroll tool).

  4. File on time to avoid penalties.

  5. Keep copies for at least 4 years.


 

💡 How TaxHero AI Helps

1099s are just one part of the tax mess.
TaxHero AI (powered by Richie AI) makes sure you:

Learn more: https://taxhero.vc


 

🔗 Related Posts


TL;DR for Founders

✅ Task 🗓 Deadline
Collect W-9s Before paying contractors
Track contractor/vendor payments Ongoing
File all required 1099s January 31
Keep records 4 years

🏁 Final Word

1099s may seem small, but ignoring them can lead to IRS headaches and penalties.
Get W-9s, track payments, file on time and let tools like TaxHero AI keep it all straight for you.

 


Taxes without the complexity

With AI-powered bookkeeping and tax filing, you stay focused on what matters: building your startup.

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