Generally a payer issues Form 1099 MISC for payment of $600 or more to unincorporated entities in the ordinary course of his business during a year.
Here is an extract from the instructions for your reference-
File Form 1099-MISC, Miscellaneous Income, for each person to whom you have paid during the year:
At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest (see Box 8 on page 6);
At least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate;
Any fishing boat proceeds; or
Gross proceeds to an attorney.
Exceptions. Some payments are not required to be reported on Form 1099-MISC, although they may be taxable to the recipient. Payments for which a Form 1099-MISC is not required include:
Generally, payments to a corporation; but see Reportable payments to corporations below;
Payments for merchandise, telegrams, telephone, freight, storage, and similar items;
Payments of rent to real estate agents, but see Regulations section 1.6041-1(e)(5), Example 5;
Wages paid to employees (report on Form W-2, Wage and Tax Statement);
Business travel allowances paid to employees (may be reportable on Form W-2);
Cost of current life insurance protection (report on Form W-2 or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.);
Payments to a tax-exempt organization, the United States, a state, the District of Columbia, a U.S. possession, or a foreign government; and
Certain payment card transactions if a payment card organization has assigned a merchant/payee a Merchant Category Code (MCC) indicating that reporting is not required. A cardholder/payor may rely on the MCC that the payment card organization assigned to a merchant/payee to determine if a payment card transaction with that merchant/payee is subject to reporting under section 6041 or section 6041A. For more information and a list of merchant types with corresponding MCCs, see Revenue Procedure 2004-43 which is on page 124 of Internal Revenue Bulletin 2004-31 at www.irs.gov/pub/irs-irbs/irb04-31.pdf.
Reportable payments to corporations. The following payments made to corporations generally must be reported on Form 1099-MISC.
Medical and health care payments reported in box 6.
Fish purchases for cash reported in box 7.
Attorneys' fees reported in box 7.
Gross proceeds paid to an attorney reported in box 14.
Substitute payments in lieu of dividends or tax-exempt interest reported in box 8.
Payments by a federal executive agency for services (vendors) reported in box 7.
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Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.