Should companies issue a form 1099-misc to Business Incubators?
It depends on which kind of business entity the business incubator operates under. As an independent contractor who gets paid more than $600.00 each year the 1099-Misc must be issued. If the business incubator is one of the new breed of full service, A-Z, business architects, business engineers and “business building SWAT teams” you don’t have to worry about any 1099, because they will be incorporated and have their own Employer Identification Number, Invoice you for earned performance fees or they will only as a shareholder in your company be entitled to a share of your net profits as compensation.
