Tax form between companies?

Question

If company A hires company B for consulting, what tax (or other) forms are passed between each other? What procedure/book keeping is generally needed?

Answer 1

Generally, Company A would be required to send Company A (and the IRS) a Form 1099, if the total payment in the course of a fiscal year exceeded $1,000. A written service contract could be helpful to record and enforce parties' obligations, but, as far as I know, is not required. (Disclaimer: I am not a lawyer, nor do I play one on TV.)