jasonnews[at]mail.com wrote:

- quote -

First thing you need to know, is that before you pay 1$ to
any subcontractor, you need him to fill out a W9 form,
giving you name rank and serial number, well, name, address
and SSN; or FEI#.

Purpose of the form is two fold; 1. to provide you with
said information in case you have to give him a 1099-misc at
year's end, and (2) to attest that he is not subject to
backup withholding.

If he refuses, do not pay him. Period. Or if push comes
to shove (before he shoves you against the wall for NOT
paying him), pay him, but withhold 31% for taxes.

Be sure to read more on the rules before you take the
plunge. Or get local competent tax help.

ChEAr$,
Harlan Lunsford, EA n LA
Sun 20 Mar 2005

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I'm starting a contruction company and I had a quick
question..

If I pay a sub contractor to do work on a project do I need
to 1099 them at the end of the year or just deduct the
amount paid from my gross ?

For example suppose I'm renovating a condo and i pay the
painter $2,000 to paint the condo which is a part of a
larger renovation..

Do I need to report this to them if the painter is not a
corporation or LLC? For example if I'm just making out the
check to John Ross or something..

Thanks

Jason

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