Do I need a business license if I get a 1099?

Answer by  mammakat (11147)

Not necessarily, this would depend on what service you are performing. A 1099 only indicates that you are an independent contractor and your employer will not be deducting taxes- that is entirely your responsibility, and this is a heads-up to the IRS that you will be owing them.

Answer by  hahagal (983)

Depending on the type of business that you are planning to run and the state that you are in, then you will need to get a business license.

Answer by  OU (135)

No. You do not need a business license just because you get a 1099. You could be self employed with no need of a license. You will need to report the 1099 amount on your taxes for the year.

Answer by  happytimes63 (865)

Laws vary by state, but you can ususally use your Social security number to file your taxes with if you have recieved a 1099 for services rendered. If you were selling anything that required sales tax, you will need a sales tax number to submit the taxes to the state.

Answer by  Eric6566 (115)

No, the most common instance of a 1099 being used is in the case of an independent contractor, many of whom do not hold business licenses.