1099 and LLC

[dbarnello]

I have been umpiring youth sports since January of this year. I will receive multiple 1099s from the schools that I have officiated at. Our family has just formed a LLC in Arkansas for the purpose of sports officiating training, certification and management. Can I merge the income from my 1099s since it was Sports officiating with the new LLC?

[Alicia65]

 Generally, income received from youth sports officiating on 1099s from schools can be reported under your family's newly formed single-member LLC in Arkansas. This is because officiating services are considered a legitimate business activity. You would then include your individual umpiring income and expenses as part of the LLC's income on Schedule C of your personal tax return.

 Sports officiating training, certification and management is all related. One Schedule C will be needed. provided it is a single-member LLC

[AmeliesUncle]

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@dbarnello wrote:

Our family has just formed a LLC 

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"Our family"?  Are you saying this is a MULTI-Member LLC (multiple owners)?  Or is it only a Single-Member LLC?

[dbarnello]

Multi- member

[AmeliesUncle]

A Multi-Member LLC the conducts business is taxed as a Partnership.  That is a completely separate tax return apart from your personal tax return, although the profit does "pass through" to your personal tax return.

You had mentioned "my" 1099s, which seems to indicate those belong only to YOU, not a Partnership.  If that is the case, your self-employed income can not be combined with the Partnership income.  They are two separate businesses.

[dbarnello]

Thank you. Is there any way to have my umpire earnings go through the Sports Officiating & Training LLC? For example, should I list the LLC on the W-9s I complete for each High School I work? 

[AmeliesUncle]

All current payments should be made to the LLC/Partnership, which would make that income be reported on the Partnership return.

Yes, if you are now doing the work under a new business (the LLC/Partnership) and the clients are now paying the new business (not you individually) you would give new W-9s to the payers.

But any work done before that, and usually any payments made to you individually, would not be part of the LLC/Partnership return.

I highly recommend consulting a good tax professional right away for the Partnership, and have the tax professional do AT LEAST the first year's tax return for the Partnership.