1099-NEC Deadline Reminder for International Entrepreneurs

Running a U.S. company from abroad is exciting — but January always brings one fast-moving compliance item: 1099 filings. If your U.S. business paid independent contractors or service providers during 2025, this is the moment to make sure you're ready.

Here's the key date to keep in mind: Form 1099-NEC is generally due January 31 — and that includes both filing with the IRS and giving a copy to the contractor. This year, there's one small twist that matters a lot: January 31, 2026 falls on a Saturday, so the deadline shifts to the next business day, which is Monday, February 2, 2026.

What is a 1099-NEC?

In simple terms, it's the form most businesses use to report nonemployee compensation, which usually means payments to contractors. The most common rule people run into is the $600 threshold: if you paid $600 or more to a contractor/service provider during the year (as part of your business), you generally need to issue a 1099-NEC. And this isn't just for one type of company — whether you're operating as an LLC, corporation, or partnership, the filing requirement depends more on the type of payment and who was paid than your entity type.

What You Need Before You File

Before you file anything, you'll want to make sure your basics are correct, because most 1099 problems come from missing or incorrect details. Ideally, you should already have:

• A W-9 from each U.S. contractor/vendor (legal name + TIN)
• The total amount paid to each payee in 2025
• Your company EIN and business address
• A clear record of how they were paid (ACH/check vs. card/PayPal)

And there's one common "gotcha" I always like to mention: payments made through payment cards or third-party networks (like PayPal) must be reported on Form 1099-K by the payment processor, not on your 1099-NEC. This one detail can save you from issuing forms unnecessarily (or accidentally duplicating reporting).

The Deadline: What Needs to Happen by February 2, 2026

Now let's make the deadline very practical. By Monday, February 2, 2026, you typically need to do two things:

1. Send recipient copies to your contractors, and
2. File Copy A with the IRS (paper or electronic)

This matters because the IRS can assess penalties if you file late, or if the statements are late/incorrect. The easiest way to avoid stress is to treat January like your preparation month — and aim to finish early.

A Simple Plan That Works

If you want a simple plan that works, here's what I recommend:

1. Request W-9s early. Don't wait for January — it's best to request it when you start doing business with a contractor.
2. Export your contractor totals from your bank/accounting system (by vendor).
3. Identify the payment method (card/third-party vs. direct payments).
4. Confirm who actually needs a 1099-NEC (this helps you avoid over-filing and mismatched TIN issues).
5. Generate the forms (software or a professional preparer).
6. Deliver recipient copies and submit to the IRS before the deadline.
7. Save records (W-9s, totals, proof of filing/delivery).

Need more time? You may be able to request an automatic 30-day extension using Form 8809 (with limits for certain forms, including 1099-NEC).

Important Note for International Founders

Pay attention to who you paid. If your contractor is a U.S. person, the flow above usually applies. But if you paid a nonresident alien, that compensation is generally reported on Form 1042-S, not 1099-NEC — and withholding may apply. That's why collecting the right tax form up front (W-9 vs. W-8) is so important. If you're not sure which applies, it's better not to guess — we can help you triage it quickly.

Don't Forget State Requirements

Also, don't assume this is federal-only. Some states have their own information return rules. For example, California often relies on federal information returns in many situations, but exceptions exist. And Delaware requires certain 1099 information (including 1099-NEC) to be submitted directly to the state. If you operate across states — or you have contractors in multiple states — it's worth doing a quick compliance check.

How Simple Corporate Solutions Can Help

If you want this off your plate (especially when you're managing everything remotely), this is exactly the kind of work we handle at Simple Corporate Solutions. We can:

• Collect and organize your contractor list and totals
• Validate W-9 details so names/TINs match during e-filing
• Prepare and e-file the required forms
• Provide recipient copies and a clear "what was filed" summary
• Flag common international edge cases like 1099-NEC vs. 1099-K vs. 1042-S

Quick Example

Let's say you formed a U.S. LLC and worked with contractors in 2025. You collected W-9s during onboarding, paid two contractors over $600 by bank transfer, and now you're preparing your 1099s. Since January 31, 2026 is a Saturday, your practical deadline becomes February 2, 2026 — and you file with the IRS and send recipient copies by that date.