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I want to start doing business as an LLC in Arizona. I currently have work crews that go out and build projects. I pay them weekly and 1099 at the end of the year. They are not my employees as I do not tell them what hours to work only if I have a job scheduled for the following day(s) I do not provide them with any tools to do the job but obviously the job must be done according to plans and specs. Once an LLC is formed would I be required to have them as employees? I was just told that a LLC cannot issue 1099-misc


Expert Barbara Blacklidge's Answer:

The information you were given is incorrect. You are required to issue a 1099-MISC to any subcontractor that is not a corporation (S corp or C corp). Please let me know if you require further information or clarification. Thank you and best regards, Barbara

Barbara Blacklidge, EA


17 yrs experience

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