A vendor is an entity that provides a good or a service to your business. For contractors, this includes your material suppliers and subcontractors. One important thing to keep in mind is that some of your vendors need to be treated differently for IRS reporting purposes. That means you need to think about your vendors in two groups: the first are vendors that you purchase materials from and the second are subcontractors, often called 1099 vendors. In this video, we will discuss those vendors that are material suppliers only. You can reference the video, “Subcontractors (1099 Vendors),” for information on subcontractors.
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