1099-K Incorrectly issued to me personally instead of the business

[Anonymous]

A payment processing firm issued a 1099-K to me personally, and my personally SSN, even though the single-member LLC, EIN, was setup in the system and was the entity that received the funds. They are refusing to correct the 1099-K. 

With that in mind, do I now need to legally issue a 1099 from me personally to the business to removed the 1099-K issued to my personal SSN and show the income to the business EIN?

[Hal_Al]

Q.  With that in mind, do I now need to legally issue a 1099 from me personally to the business to removed the 1099-K issued to my personal SSN and show the income to the business EIN?

A. No.

A single member LLC is a Pass Thru Entity.  All income is reported on Schedule C. It doesn't matter whether the payment processing firm issued the 1099-K in your SS# or the EIN.

[Anonymous]

Thank you, and I understand what you’re saying. However, I have two companies, both are single member LLC’s. The issue is for SEP IRA contributions, each company has the reported income. So are you saying I just report the 1099-K on the Schedule C for company that actually received the income and ignore having to create a SCH C with my personal SSN? 

Also, I don’t want a notice from the IRS when they recognize no reported SCH C with my SSN and just two with EINs. 

[Hal_Al]

You enter both your SS# and the LLC EIN (on line D) on the Schedule C for that company.  TurboTax will provide the entry screens.

[dmertz]

More correctly, a single-member LLC that has not elected to be an S-corp is a disregarded entity, not a pass-through entity.  As a disregarded entity, anything paid to the LLC is treated no differently than a payment made to you personally.  TurboTax will combine the amount from your two Schedules C to determine the amount on which your SEP contribution is calculated.