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joeburcht
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As an LLC company,can I hire myself as a subcontractor?

 
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Anita01
New Member

As an LLC company,can I hire myself as a subcontractor?

If you are planning to file as a Self-Employed sole proprietor on a Schedule C, you cannot.  

If you are filing as an S Corp, you can issue either a 1099-MISC or a W-2 to yourself.

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5 Replies

As an LLC company,can I hire myself as a subcontractor?

Is the LLC incorporated ?   Did you make the S-corp election ?

As an LLC company,can I hire myself as a subcontractor?

Is this a single member LLC ?
Anita01
New Member

As an LLC company,can I hire myself as a subcontractor?

If you are planning to file as a Self-Employed sole proprietor on a Schedule C, you cannot.  

If you are filing as an S Corp, you can issue either a 1099-MISC or a W-2 to yourself.

As an LLC company,can I hire myself as a subcontractor?

What if you are not the sole propoertor? i own an llc with my husband

DavidD66
Expert Alumni

As an LLC company,can I hire myself as a subcontractor?

If you own an LLC with your husband, you are treated as partnership for tax purposes; unless, you live in a community property state, in which case you can choose to be treat your jointly owned business as a disregarded entity for federal tax purposes.  If you choose to do so, you would have to designate one of you as the "sole member" and complete the Schedule C in that name.  Depending on the circumstances, either you or your spouse could variously be considered an employee, an independent contractor, or—in spite of not officially appearing in an operating agreement as such—an additional LLC member.  So yes, if you live in a community property state, you treat your multi member LLC as a Disregarded Entity, and your husband is designated as the "sole proprietor", your LLC could hire you as a subcontractor.

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