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New Member
posted Jun 3, 2019 1:11:03 PM

I am an independent contractor and I am subcontracting to a LLC corporation. They are not required to 1099 misc. Do they still fill out w9? How do I report their earnings

0 5 1919
5 Replies
Level 3
Jun 3, 2019 1:11:04 PM

Why are they not required to 1099?  

New Member
Jun 3, 2019 1:11:10 PM

Turbo tax answers told me that an LLC that is an s or c Corp doesn't need to have a 1099 misc.

Level 15
Jun 3, 2019 1:11:12 PM

Just to be clear.  This is a LLC that you pay?  Not that is paying you, right?  You can enter what you paid anyone or LLC under Contact Labor Schedule C line 11 even if you don't issue them a 1099Misc.

New Member
Jun 3, 2019 1:11:13 PM

Yes, we are paying them. Thank you for your response, it was the answer I was looking for

Level 15
Jun 3, 2019 1:11:14 PM

You issue a 1099-MISC for payments of more than $600 to LLCs, unless the LLC has made the election to be treated as an S- or C-corp.  However, you should ask them to fill out a form W-9 for you.  They can check the box for LLC taxed as an S- or C-corp and then not provide their EIN, but that way you have their signature on file that they told you they are exempt from getting a 1099-MISC.  (If you take their word for it, and don't issue a 1099-MISC, and they are lying or mistaken, you can be fined for not issuing the 1099.  If you get the W-9 where they sign that they are an LLC taxed as an S or C, then you made a good faith effort to do the right thing.)

If they are exempt from receiving a 1099-MISC, then you simply don't report their income to the IRS.  They are required to accurately report their income and pay tax, and whether they do or not is between them and the IRS.