I owned a LLC and provides consulting services for my client. However, this client (and the only client, a corpration) only issues 1099 to individual, not to LLC because It's my client's company policy.
Can I just report all 1099 income, wiich issued to my, with my SSN, into my LLC (becuase this is indeed my LLC's income) tax return, not into Sch C in my indicidual tax teturn without any trouble from IRS?
Thank you very much.
2007-08-13 19:49:46 · 4 answers · asked by Madisoncate 1 in Business & Finance ➔ Taxes ➔ United States
Actually, it's not just your client company's policy, it is the tax law. The tax laws only require that 1099s be sent to individuals. You are not required to send 1099s to any entity, such as an LLC, partnership, trust or corporation with it's own federal ID number (EIN).
A single member LLC can elect to be taxed as a sole proprietorship (files Sch C on the 1040) or as a corporation (files an 1120 or 1102S). Apparently you did not elect your LLC to be taxed as a corp nor did you apply for an EIN. Therefore it will be taxed on your 1040, Sch C.
2007-08-14 02:28:50 · answer #1 · answered by CPA/PFS 2 · 1⤊ 1⤋
A single-member LLC is a disregarded entity as far as the tax laws are concerned. You report the income on Schedule C anyway so it doesn't matter how the company pays you since the LLC does not file a separate return.
2007-08-14 08:01:23 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Do you have a Federal tax number for the LLC?
If issed under your SSN then the IRS will be looking for that income on your personal tax return under the appropriate section.
2007-08-14 05:48:53 · answer #3 · answered by Anonymous · 0⤊ 0⤋
report either way. just report the income that you made.
2007-08-14 02:57:36 · answer #4 · answered by just hanging around 5 · 0⤊ 0⤋