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Do I issue a K1 or 1099-MISC?

An LLC member is getting paid a monthly salary, which is recorded under Guaranteed Payments. This is totally separate from any distributions he may have received. Do I issue him a 1099-MISC for his Guaranteed payment salary, and also a K1? Or does this go on his K1 Form only?


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3 Replies
WillK
Intuit Alumni

Do I issue a K1 or 1099-MISC?

The entity will file form 1065 which will generate the K-1 for each member of the LLC. The guaranteed payments will be reported on line 4 of the K-1, which the member would enter on their personal return as ordinary income. 

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WillK
Intuit Alumni

Do I issue a K1 or 1099-MISC?

The entity will file form 1065 which will generate the K-1 for each member of the LLC. The guaranteed payments will be reported on line 4 of the K-1, which the member would enter on their personal return as ordinary income. 

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Carl
Level 15

Do I issue a K1 or 1099-MISC?

Assuming this is a multi-member LLC that files a 1065 Partnership/LLC return, you do NOT issue a member a 1099-MISC.  The get a 1065 K-1 with Guaranteed payments in box 4. An LLC member can not be a 1099 contractor or W-2 employee of the business either. For better "plain english" clarification on this (including exceptions) please read https://www.legalzoom.com/articles/is-a-partner-in-an-llc-an-employee

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