I just checked the California Secretary of State and it shows Odesk as a corporation. (Formal name:
Odesk Corporation)
Entity Name:ODESK CORPORATION
Entity Number:C2498116
Date Filed:01/27/2003
Status:ACTIVE
Jurisdiction:CALIFORNIAEntity
Address:901 MARSHALL ST STE 200
Entity City, State, Zip:REDWOOD CITY CA 94063
Agent for Service of Process:GARY SWART
Agent Address:901 MARSHALL ST STE 200
Agent City, State, Zip:REDWOOD CITY CA 94063
As such you would not be required to send out a 1099 to Odesk. The IRS does not require you to send 1099's to corporations. (As long as Odesk is sending 1099's to the subcontractors you are fine.)
Navigate to
http://www.vrsioffice.com/forms/Inst-1099-Misc.pdf and note the highlighted sections.
I would just list it as Professional Service fee on your books / taxes
Julie