Confusion with Single Member LLC vs Individual Filing

Forum|Forum|1 year ago
February 25, 2025
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I started a single-member LLC last year for freelancing, and I need to issue a 1099-NEC to a contractor I paid (I realize I'm past the deadline). Do I need to issue it from the business, using the LLC's EIN, or from myself as an individual? If it's individual, do I need to put my address or the LLC's address, which is different from mine? I do not have a personal EIN, but my LLC does.

I also have two 1099s from payment processors - one is in my name/SSN from before I started the LLC, and one is issued to the LLC name/EIN. Are both of these fine to report to Turbo Tax as they were issued? I know a SMLLC is disregarded, but this scenario is really confusing me so any guidance would be appreciated.

Not A Product Question

PatriciaV

Employee

You need to send Form 1099-NEC from the business using the LLC's name, EIN and address. This is because individuals are not required to file a 1099 for services rendered.

Report business-related income on Schedule C for the SMLLC. Since you and the business are the same entity to the IRS, it doesn't matter which name is on the Form 1099's reported to you.

If any of the 1099's report income from another activity (or sale of personal items), enter them separately.

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wakywakAuthor

Thank you. It seems like this contradicts with the IRS instructions though, right? Since my SMLLC is not taxed as a corporation. From the IRS website:

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). If the LLC is taxed as a corporation, partnership, etc., enter the entity's EIN.

This is why I'm asking the question, I'm seeing contradicting info everything and really don't know what to do, and I want to get this 1099 issued ASAP.

AmeliesUncle

@wakywak wrote:
Do I need to issue it from the business, using the LLC's EIN, or from myself as an individual? If it's individual, do I need to put my address or the LLC's address, which is different from mine? I do not have a personal EIN, but my LLC does.

I also have two 1099s from payment processors - one is in my name/SSN from before I started the LLC, and one is issued to the LLC name/EIN.

When issuing 1099s, you enter YOUR name and YOUR ID number (your SSN or an EIN in your personal name). Not the LLC's name and not the LLC's EIN. If you don't have an EIN in your personal name, I would recommend getting one. The address doesn't really matter.

When filling out a W-9, you enter YOUR name and YOUR ID number (your SSN or an EIN in your personal name). Not the LLC's name and not the LLC's EIN. Then the issuer will send the 1099 in your name and ID number.

If you already received a 1099 in the LLC's name and EIN, it probably isn't a big deal. But you should correct the W-9 with the issuer that sent it to your LLC.