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Business & farm
It is not necessary to have an LLC to be a Sole Proprietor. If you prefer to have one, you still have the choice of being taxed as an SP or as a Corporation. If you choose to be taxed as an SP, then it doesn't matter. Your would file Schedule C as you normally do.
Yes, you would deduct that as a material and contract labor expense. You would need to issue a 1099-Misc to anyone whom you paid more than $600.
You will encounter this question in the interview for your business.
To get to the 1099-Misc:
While in your return, type “1099-misc” in the Search box and then select the “Jump to” link. This will take you directly to the section where you can enter your 1099-MISC. You will encounter these screens.
- Did you get a 1099-MISC? Yes
- Fill in the "Let's get the info from your 1099-MISC" screen
- If necessary, check the box "My form has other info in boxes 1-18.
- You would just report your income on Schedule C as if you had any other profession.
March 14, 2020
12:47 PM