If a SMLLC which has not elected to file as a Corporation and therefore files as a Schedule C subcontracts to work for someone else, does the payor not give the LLC a 1099 because it is a corporation or does it give the LLc a 1099 because it is filing as a Schedule C? If it does 1099 the LLC does it make the 1099 out to the individual DBA the Blah Blah LLC using the individual's SS # ?
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Llc 1099
If a SMLLC filing as a sch C does subcontract work for another company that company has to file a 1099. It can be either Joe Blow xxx-xx-xxxx or XYZ LLC xx-xxxxxxx.I would put a favorite quote in here, but it would get me banned from the board. -
and "C" in LLC stands for Company not for Corporation. Meaning all LLC's have to be issued a 1099 no matter how they file their tax returns. Lots of people are confused about this.Comment
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The payor should give the LLC a Form W-9 to request the taxpayer ID number and use the information from the W-9 on the 1099MISC. Only if the Corporation box is checked would I not issue a 1099MISC (unless an attorney). The W-9 was revised last month and if an LLC the tax classification is requested (D=disregarded entity, C=corporation, P=partnership).
I would also issue a 1099MISC for an LLC w/ tax classification as corporation, as they are not a corporation.Comment
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