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Level 1
posted Jul 14, 2020 9:59:52 PM

Owner of single-member LLC issued 1099 to self

I own a single-member LLC and pay myself (not a salary). I issued a 1099 to myself and filed to IRS. I realize now that this is not the correct way to do things. Any advice for what I do now? Are the payments to myself considered partner distributions?

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1 Best answer
Level 15
Jul 15, 2020 8:05:40 AM

Any payments to you from your single-member LLC would be considered a "draw"; they would not be considered "partner distributions" (you have no partner).

 

Provided you report the income you received from operations on your individual income tax return (Schedule C), there should be no issues.

 

1 Replies
Level 15
Jul 15, 2020 8:05:40 AM

Any payments to you from your single-member LLC would be considered a "draw"; they would not be considered "partner distributions" (you have no partner).

 

Provided you report the income you received from operations on your individual income tax return (Schedule C), there should be no issues.