1099-misc to an LLC

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In 2016, I started an LLC to "upgrade" my 1099-misc business. The jobs, clients and expenses are the exact same but I am not sure how to work this in TurboTax? Is my LLC an new business? thanks

TurboTax Self Employed Online

DS30

Level 12

It depends but if this is a single member LLC that was created for the same business as your sole proprietorship business, then no additional reporting requirements are necessary. Simply report the full year's business income and expense on your Schedule C. This is due to the fact that the IRS considers a single member LLC as a disregarded entity for income tax purposes so you would just file the total tax year's business income and expense (both before and after the single member LLC creation) on the same Schedule C (or Schedule E is a rental property LLC) as though no change took place.

For more information see Single Member Limited Liability Companies

However, if this is a multi-member LLC (except for a community property state husband and wife LLC that elects disregarded filing status), then this LLC will need a separate business filing. In this case, you will need to report that this is your final Schedule C for your sole proprietorship business and report LLC income and expense as separate from your prior sole proprietorship business income and expenses. Depending on the form of this new multi-member LLC, you will need to report any K-1 (if a partnership) or dividend income (if C Corp) from the new LLC separately on your income tax return.

saranesson

Level 2

Thank you for this info DS30.

I started my single owned LLC in September in 2019 and yet most of my 1099-misc income and business-related expenses were still through me as a sole proprietor.

Just to confirm, my 1099-misc income (mostly to my personal but some to my LLC) and expenses gets reported on the same Schedule C?

Thank you!

Sara