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Originally Posted by peteysa
Greetings,
I have just formed an LLC to absorb the money made via 1099. Can I immediately begin accounting the checks coming in for my new LLC or do I need to wait for my EIN (mailed off today) and send my current clients new 1099s?
I'm assuming to wait since one is based on SSN vs EIN.
Thanks!
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I hope you weren't expecting to reduce your taxes and only your liability with this, since that's what you're doing. I'm also assuming that you formed the LLC when you started work, and simply didn't have all the paperwork done in time for some 1099s.
Anyways, you can report all your income through your LLC if you want. On your 1040, simply fill out a schedule C with all your income that matches your SSN 1099s, and then have a large deduction that states "Amount nomineed to LLC EIN #XX-XXXXXXX." This will help the IRS match the amounts listed, and then they can reference your LLC return. Your LLC will have an income item listing "Amount nomineed from XXX-XX-XXXX [insert SSN here]."
No big deal. Just make sure you don't double count anything, and since the IRS usually screws something like this up, expect to get a letter or two in the mail.