If I change filing status from sole proprietor LLC to S Corp mid-year, but I only receive a single 1099 for my EIN that would cover the period before the tax status change

[Mirai]

Hi, I have been looking into changing my LLC filing status to S corp due to an large increase in my freelance work income on top of my W2 job (and also filing jointly with my wife).

However, it would be from the same client and I don't plan to change my business/LLC so the EIN will be the same and thus I'm assuming they will only send out a single 1099 for before and after my tax filing change.

I haven't met with an accountant yet, but from what I've been reading it seems I cannot split a single 1099 into two different filings for my individual and also the S corp? So it would be better to just change the filing status to align with the new tax year/calendar year? Thanks! 

[AmeliesUncle]

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@Mirai wrote:

I haven't met with an accountant yet

it seems I cannot split a single 1099 into two different filings for my individual and also the S corp?

So it would be better to just change the filing status to align with the new tax year/calendar year? 

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The first thing you should do is meet with a GOOD tax professional about the S-election.  Despite what TikTok and random websites say, the S-election is NOT always a good fit.  

If the tax professional does not discuss  the additional costs and the effects on your potential Social Security benefits, find another tax professional.

The 1099 doesn't matter.  Just keep track of the income.

In many/most cases, yes, an election to correspond with the beginning of a tax year is often best.  But you can discuss that with your tax professional.

[Mike9241]

when you filed that 2553 did you elect a fiscal year because generally S-elections are made on a calendar year basis. check the response from the IRS as to when the tax year starts. 

also fiscal year selection may be invalid if it is not a valid business year

from 2553 instructions

1. It has or will adopt or change to one of the following tax years.

   1. A tax year ending December 31.

   2. A natural business year.

   3. An ownership tax year.

   4. A tax year elected under section 444.

   5. A 52-53-week tax year ending with reference to a year listed above.

   6. Any other tax year (including a 52-53-week tax year) for which the corporation (entity) establishes a business purpose.

   For details on making a section 444 election or requesting a natural business, ownership, or other business purpose tax year, see the instructions for Part II.

also, the S-corp would have a different EIN then the one the sole proprietorship had (if any).  I agree @AmeliesUncle consult a pro.