1099's for mulitiple businesses

[mactoolsix]

We have a client with two Sch C businesses. We allocate $500 to each for tax preparation fees. Is a 1099 required, or is it by business?

If one business had a 1099able expense, it needs to issue the 1099. If both had a 1099 expense, they should each issue a 1099. But in this case, neither alone needs to issue a 1099. Does the 1099 requirement stem from payments made by the owner or payments made by the business?

Mike

[Snaggletooth]

Who wrote the Check

No problem with the allocation, but the burden of issuing the 1099 falls upon the entity that wrote the check.

If there were two separate checks for only $500 during the course of the year from each entity, there is no
1099 requirement on either.