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schlueter-paul
New Member

Do I need to issue a 1099 for the sole proprietor business and one for the LLC to my 1099 employees when I changed the structure of the company mid year?

I was wondering if I need to issue 2 different 1099's for my employees when I LLC ed my sole proprietor business in the middle of the year or can I report all their income on one 1099-MISC form?

1 Reply
PatriciaV
Expert Alumni

Do I need to issue a 1099 for the sole proprietor business and one for the LLC to my 1099 employees when I changed the structure of the company mid year?

It depends. If your LLC has a different tax id number (or EIN) than your sole proprietorship, then you definitely need to provide two Forms 1099-MISC. 

However, if the tax id for the LLC is the same as the sole proprietorship, you could provide one Form 1099-MISC. A Single-Member LLC is disregarded by the IRS for tax purposes, so you and the LLC are the same tax entity. If this is true in your situation, be sure to include both the name of your sole proprietorship and the LLC on Form 1099-MISC.

Note that there is no penalty for sending two Forms 1099-MISC when your business identity changes.

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