I agree with everything you said. And thank you for your reply. I will indeed report my work as contract labor, and it is more than $600.
However. What confuses me is how do you balance the status of the SMLLC, that it is a separate business but also a disregarded entity with respect to tax purposes?
For example, the SMLLC has its own EIN. It's a separate business and legal entity. But for taxable income reporting, I report the SMLLC with form 1040C using my SSN. Not the EIN.
I agree with everything you wrote. But where is my mistake here: Since the SMLLC is a disregarded entity for tax purposes, this is a 1:1 transfer of taxable income to the same taxpayer, and I should therefore NOT file a 1099?
Thank you.
