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Tax Year Prior to 2020: Do I issue 1099 to spouse from a 1 member LLC?
My wife owns a single member LLC and I help run it but do not own any part of it. She also has a F/T job but I'm working on the LLC. I do not draw a salary and our household is run from owner draw from the LLC.
Does the LLC need to issue a 1099 to the non-owner spouse? How do you handle this situation?
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If you are doing work for her LLC, then yes, you are sub-contractor and should receive a 1099 from her LLC. This means you are also self-employed and have to file your own Schedule C for your income. She would issue you a 1099, claim the expense on her Schedule C and you claim that income on your Schedule C. Check out this discussion on a similar situation as they cover different scenarios. Single Member LLC w/ Employee or Subcontractor Spouse
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Thank you. I was going down the same path. I'll have a look at the discussion.
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If you were paid over $600 for the calendar year doing work for the LLC, then yes, your spouse would issue you a 1099 (which is an expense to the business and income to you). You would file a Schedule C for the business (reporting all income and expenses), and then a Schedule C for your 1099 (reporting all income and expenses).
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