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I have an S corporation. I paid an independent contractor fees for his services. He has given me a W-9 with an EIN number for a business and requested the 1099-Misc to go to the business EIN (an LLC). However, all of the checks I made out went to him personally. Can I issue the 1099 to the business or do I need to issue it to his social security number since the checks were made to him personally?


ANSWER


The BIDaWIZ Team's Answer:

Generally, if the completed W-9 Form shows an EIN number and an LLC business name, then the 1099-MISC should reflect that information. However, is the LLC taxed as a sole proprietorship? If not, this would be concerning. If it is taxed as a sole proprietorship, it's possible that the LLC does business as the owner's name via a DBA, although it's usually the reverse (i.e business owner does business as XYZ LLC). We would confirm with the contractor that they are taxed as a sole proprietorship. If they are, then you should use the EIN and LLC business name as provided. This is referenced in IRC Section 6041 and IRS Publication 1220.

The BIDaWIZ Team

 

 

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