New business as QJV

[rsevrie]

Hi, 

My wife and I are setting up a new business, as QJV. Teaching a language. My wife will be doing the teaching, I will be doing contract, finding clients, advertising, budget. and may fill in the role of teaching if my wife unable to make that time. 

since the 1099 will be in her name is it still ok to split the 1099 amount base on our agreement which will either be 50-50, or 60-40 60 being her. or do we need to have some of 1099 in my name as well. there won't be must deduction other then equipment, home office and software. this business will be done online via zoom.  so the business expesses will be 50-50 on sch c we just wondering how to do the 1099. 

[rjs]

It's not clear why you are asking about "how to do the 1099." You don't issue a 1099 to yourselves. If a client is a business, not an individual, and pays you $600 or more in a year, the client has to issue a 1099-NEC to you.

If you operate your business as a qualified joint venture, you each file a separate Schedule C showing your individual shares of the business income and expenses. You divide all income and expenses between you according to your respective percentages of ownership. If you do get a 1099-NEC from a client that is a business, it doesn't matter which one of you the 1099-NEC is issued to. You split the income based on your percentages of ownership. You do not need to have the client issue separate 1099-NEC forms to each of you.

A client who is an individual does not issue a 1099. You each just report your individual shares of the income on your individual Schedule C.

[VolvoGirl]

Actually you don’t even need to enter the 1099.  Just enter the total income as Other self employment income or as Cash or General income on each Schedule C.   You don't need to get a 1099NEC or 1099Misc or 1099K.  Even if you did you can enter all your income as Cash.  Only the total goes to schedule C.

[rsevrie]

Thank you for your help, 

I sorry i was not clear let me try to make this more clear. 

our earnings will be from two different source. 

1) induvial people, homeschool group, they will pay us via cash, Venmo, ect. this method not an issue. 

2) a business will contact us to do the work, University, public/private schools. we expect to get 1099 from them when it more then $600. They already require us to give them W9 before service starts my spouse has an EIN and is using the EIN  on the w9 form. 

so basically my question was for number 2 when business give us 1099. it does not matter who name we put down on the W9 form mine or my spouse.  this is how i seem to understand it form your respond and another person respond as well. 

Thank you both so much for your help.