I have a consulting practice set up as a single member LLC. To date, I have set up a contract with all of my previous clients and have received a 1099 from them to document my income.
I have a new client (a private foundation) that wishes to set up our agreement in the form of a grant, which means I would not receive a 1099 from them. How do I treat this for tax purposes? Is the grant reported as income, just as any other payment for services? Or is there a distinction when it comes to reporting this on my taxes?
Thanks for your help.
