1099 and Sch C/Sch F Question

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#1
JamesEa  
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Curious if it is better to run a 1099 in your own name, or your entities name (disregarded entity/single member llc)?

Also, have a situation in which a Sch F business has expressed interest in doing some 1099 contractor work (marketing) for another ag related business. Would it be best to run this as Sch F.

Is there any situation in which a Sch F and Sch C be attached to an entity?

Thanks
 

#2
ATSMAN  
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For my clients that are disregarded entities except for payroll, every other tax statement is in the owner's SS#. Keeps it clean for me.

Marketing activity for another Sch F business not owned by the taxpayer should be on a separate Sch C in my opinion. I guess one could split hairs and say that it is minor engagement, but that would depend on the gross income derived from those to activities and the hours worked at each.
 

#3
Joan TB  
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From the instructions for Forms 1099:
Sole proprietors You must show the individual's name on the first name line; on the second name line, you may enter the “doing business as (DBA)” name. You may not enter only the DBA name. For the TIN, enter either the individual's SSN or the EIN of the business (sole proprietorship). The IRS prefers that you enter the SSN.

Limited liability company (LLC) For a single-member LLC (including a foreign LLC with a U.S. owner) that is disregarded as an entity separate from its owner under Regulations section 301.7701-3, enter the owner's name only on the first name line and the LLC's name on the second name line. For the TIN, enter the owner's SSN (or EIN, if applicable).

Contrary to ATSMAN, I prefer to use the EIN if available.

However, I agree with ATSMAN, I think the marketing business does not belong on Sch F, but on Sch C. There are some special handling of items on Sch F for which it seems the marketing business would not qualify.
 

#4
ATSMAN  
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Contrary to ATSMAN, I prefer to use the EIN if available.


I am just curious why you prefer the EIN of the Entity? I was told by IRS to use the SS# of the disregarded entity owner. I was like you, using EIN of the Entity and then it caused some issues with matching documents.
 

#5
sjrcpa  
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For my clients, the less their SSN gets in the hands of third parties, the better.
 

#6
Joan TB  
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Make sure you put the EIN of the disregarded entity on the Schedule C. That should help with matching or make for an easy letter of explanation. As far as why I prefer using the EIN - same as sjrcpa response.
 

#7
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At some point, it was a legal decision to form the LLC. If the client wants the LLC, I have always advised they walk, talk and act like an LLC. If they transact business as if the LLC did not exist, why form the LLC?
 


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