How to file business expense to an out of state attorney for my out of state LLC?

[mjshih2000]

Question 1: Can I file this as business expense?

Question 2: Do I need to write a 1099 to the out of state attorney firm? 

   Question 2.1: If YES, which 1099 form?

   Question 2.2: If YES, do I need to file 1096 form?

Thank you!

[DianeC958 · Accepted solution]

1) Yes, you can take a deduction for paying an out of state attorney from your out of state LLC.

2) Yes, you need to issue them a 1099-Misc form with the amount of payment reported in Box 7 of the form.

3) Yes, you need to file the 1096 form as this is required by the IRS when you file the 1099-Misc forms with the IRS.

If you use TurboTax Self-Employed or Business software there is a link to Quick Employer Forms where you can prepare the 1099-Misc and efile the forms with the IRS.

If you need to do this for 2019 the form should have been issued by January 31, 2019.  If you are filing it late you may incur a penalty for the late filing.

Quick Employer Forms

About form 1099-Misc