How to file tax for my S Corp LLC without 1099

[kiddkevin01]

I have an LLC structured as S Corp and I have income through that S Corp LLC.

I saw articles online mentioning that S Corp or S Corp LLC won't receive any 1099 form for its income. My question is how do I pay tax on that income for my S Corp LLC without 1099?

[JohnB5677]

If the S-Corp is your business, you should be preparing a separate tax return for that business.  The S corporation does not pay income tax, it has a responsibility to file an annual tax return on Form 1120S. This tax form is for informational purposes only and provides the IRS with a view of the business' earnings and expenses.

As an individual you will get a K-1 that will report your income.  This is what will be posted to your individual tax return.

[kiddkevin01]

Thanks for your reply.

How about on the IRS side?

How does IRS know or confirm that I have that income if there is no communication between IRS and the company that paid me?

[GeorgeM777]

There is a communication between your LLC (which has elected to be taxed as an S Corp) and the IRS because the Schedule K-1 that your S-Corp issues to you also gets filed with the IRS.   Your S Corp is required to forward a copy of the Schedule K-1 to the IRS. 

@kiddkevin01

[Opus 17]

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@kiddkevin01 wrote:

Thanks for your reply.

How about on the IRS side?

How does IRS know or confirm that I have that income if there is no communication between IRS and the company that paid me?

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If you are an owner of the S-corp, you must take a salary for your work that is fair and reasonable for the work you do.  The S-corp must withhold income tax and payroll taxes and give you a W-2.  You report the W-2 on your personal tax return.  You must be paid a fair and reasonable salary before you can take a profit distribution.   (If you are a passive owner and don't perform material work, you don't need to take a salary.)

Additionally, the S-corp must file its own tax return form 1120S.  This tax return will identify all the owners who get profit sharing, and the owners will all be issued a K-1 statement.  Both the K-1 statement and any W-2 will be entered on your personal tax return.  Note that form 1120S must be filed by March 15, not April 15, and there are substantial late fees if you don't get an extension. 

[kiddkevin01]

Thanks for the reply. 

So there is no communication between IRS and the company paying my company for the service at all?

[Opus 17]

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@kiddkevin01 wrote:

Thanks for the reply. 

So there is no communication between IRS and the company paying my company for the service at all?

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Anyone involved in business must issue a 1099 (NEC, MISC or other type) if they pay more than $600 to another business that is a sole proprietorship, an LLC, or a partnership.  Businesses who pay for services do not have to issue a 1099 if the entity they are paying is an S or C corp.

If you own an S-corp, other businesses that hire your business for services are not required to issue a 1099.

You are required to report all your business income using your own reliable records, even if you don't get tax paperwork from other companies that hire your company.