1099 Preparation Service for Small Businesses, with W-9 Collection

What you get from a 1099 filing service for small business

January is a poor time to find out that a contractor never sent a W-9. With this add-on, the contractor paperwork is handled in the background all year, and the year-end forms are a routine step.

• W-9 collection. We collect a W-9 from each contractor before payment, so the name and tax ID are on file when they are needed.
• 1099 preparation. We prepare the forms from the payments recorded in your books.
• 1099 filing. We file the forms and contractors receive their copies.

You do not have to build a contractor list from bank statements or send reminder emails during your busiest month.

The 1099-NEC rules behind the work

Form 1099-NEC reports what a business paid a contractor for services. It goes to the contractor and to the IRS by January 31. The reporting threshold is $600 for payments made in 2025 and $2,000 for payments made in 2026 and later. A W-9 is collected from the contractor before payment.

The threshold counts everything paid to one contractor during the year, so several smaller payments can add up to a reportable total. That is why payments are tracked by contractor in the books and not looked up once a year.

This is general information, not tax advice. For the other forms in the 1099 series and what changed in 2026, read our guide to IRS Form 1099 for Texas small businesses.

How 1099 preparation works during the year

1. Collect the W-9. When a new contractor is about to be paid, we collect a W-9 so the details are on file from the start.
2. Track payments in the books. As part of monthly bookkeeping, contractor payments are recorded and categorized so each contractor has a running total.
3. Review at year-end. We compare each contractor's total for the year with the reporting threshold and confirm that a W-9 is on file.
4. Prepare and file. We prepare Form 1099-NEC and file it, so contractors and the IRS have it by January 31.

The year-end step is simpler when December is closed on time. Our year-end preparation checklist shows what else belongs on that list.

Who can file 1099s for my business?

The business that made the payments is responsible for the forms. The preparation and filing can be handed to the team that keeps your books, and that is where it fits best: a 1099 is a total of payments, and those payments are already in your bookkeeping.

We offer 1099 preparation, filing and W-9 collection as an add-on to monthly bookkeeping for that reason. When the records and the forms come from one team, the total on a 1099 matches the expense in your books. The same approach applies to payroll and other filings, described on our bookkeeping, payroll and tax support page.

Businesses that rely heavily on subcontractors, such as the trades, have the most to track. See bookkeeping for contractors and construction.

LUCI is not a CPA firm. Tax preparation and planning for ongoing clients is a separate add-on, prepared by Katrina Lochocki, CPA, our Tax Strategist.

How the add-on is scoped and priced

This add-on is available based on your needs and scope. On a discovery call we ask how many contractors you pay and how you pay them, then include the work in one fixed-fee proposal with your bookkeeping level. Monthly service starts at $500 per month. Prices beyond that minimum are not published because scope varies. How LUCI prices bookkeeping explains the Core, Growth and Scale levels.

Onboarding is a one-time fixed fee and typically takes 2 to 4 weeks. Engagements begin with a three-month commitment and then continue month to month. If the year's books are behind, a catch-up and cleanup project is proposed first as a separate fixed fee, because the forms depend on complete records.