Here is what you need to know about 1099 filing. The rule is that you must file a form 1099 whenever you pay an individual or an independent contractor (sole proprietor or a partnership or LLC) more than $600 in a year (in total) for the work done in the course of your trade or business. This includes payments for contract services as well as interest, capital gains or dividends, etc.
Please note that a trade or business is an activity carried on for gain or profit i.e. you don't have to file a 1099-MISC for payments for non-business related services (or household service) for example babysitters, gardeners, and housekeepers.
You must send the 1099 forms to the recipient before the end of January, and a copy of 1099 form must also be filed with federal govt. and the state govt. For more information on 1099 filing, please check the link at IRS website http://www.irs.gov/pub/irs-pdf/i1099msc.pdf