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stephan2
New Member

I own my business and pay myself through the business. How should i be accounting my income? Business gets 1099 from client then i pay independent contractors.

I'm just trying to do my taxes on turbotax and want to make sure this is how i should be filing. My old accountant used to do this but he quickly moved out of the country when the virus started peekng its head out
2 Replies
rjs
Level 15
Level 15

I own my business and pay myself through the business. How should i be accounting my income? Business gets 1099 from client then i pay independent contractors.

What type of organization is your small business? Is it a sole proprietorship, single-member LLC, multi-member LLC, partnership, S corporation, or C corporation. If it's an LLC, has the LLC filed Form 8832 to elect to be treated as a C corporation or Form 2553 to elect to be treated as an S corporation for tax purposes?


When your accountant prepared your tax returns last year, did he prepare only a Form 1040, or did he also prepare a Form 1065, 1120, or 1120S? If he prepared only a Form 1040 tax return, does it include Schedule C for your business?

 

Carl
Level 15

I own my business and pay myself through the business. How should i be accounting my income? Business gets 1099 from client then i pay independent contractors.

If your business is a sole proprietorship or single member LLC that reports business income/expenses on SCH C as a physical part of your personal 1040 tax return, then under no circumstances will the business issue any kind of tax reporting document (W-2, 1099-MISC, etc.) to the owner of that business. There are no exceptions.

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