topic 1099-MISC's for LLC and Sole Prop in Business & farm

1099-MISC's for LLC and Sole Prop

TMTech99 — Sun, 22 Mar 2020 06:03:40 GMT

This year I move my sole prop business over to an Multi-Member LLC. Most of my customers sent 1099 to the New EIN but a lot of my customers sent 1099's to the old Sole-Prop EIN.

I have already mostly done the 1065's but wondering what the do with the 1099's that were issued to my sole prop that im trying to draw down.

Do i still add them to my normal taxes as i did before and produce a schedule c for those?

Hopefully this makes sense.

Thanks!

Re: 1099-MISC's for LLC and Sole Prop

Anonymous_ — Sun, 22 Mar 2020 14:18:27 GMT

You can contact your customers and request that they send corrected 1099s with your LLC's EIN.

Alternatively, you can report the 1099s that have your SSN on your personal income tax return and indicate that you received the proceeds as nominee for the LLC.

Re: 1099-MISC's for LLC and Sole Prop

TMTech99 — Sun, 22 Mar 2020 17:18:17 GMT

Thanks!!

Since some if this clients are large entities which would take a lot to get to the right person i will just file them under Sole Prop and schedule C and next year have everyone on the 1065.

Where would you indicate that proceeds as nominee for the LLC?

-T-

Re: 1099-MISC's for LLC and Sole Prop

Anonymous_ — Sun, 22 Mar 2020 17:24:48 GMT

@TMTech99 wrote:
Where would you indicate that proceeds as nominee for the LLC?

You can enter the proceeds as Other Expenses and indicate the amount on Line 1 of Schedule C that was received as nominee for the LLC.

Note that you need to file a tax reporting statement (1099) with the IRS and issue a copy to the LLC as well.