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How to enter 1099-int for LLC

Forum|Forum|7 years ago
April 2, 2019
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I set up a sole-proprietorship LLC in 2018 and the business doesn’t open until 2019. I opened a checking account for the business in 2018 and received $200 bonus. Can I record the $200 as personal or I have to report under Schedule C? This is the only income I have for 2018 under this business. Thanks

Best answer by IsabellaG

That won't matter, because the LLC is a disregarded entity, unlike a partnership or a corporation, and its income is your income. In this case, the $200 isn't self-employment income, so you can report it as personal income. But the truth is that since it's only $200 (and your only income relating to the LLC), it's below the amount at which you'd pay self-employment tax. So no matter where you reported it you would wind up with the same amount of tax.

In your case, since the business didn't even start until this year, it's fine to report it as Other Income.

IsabellaG

You can report this income as personal Other Income.

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E

Emily2019Author

Thanks for the quick reply. Just want to clarify that the 1099-int I received is under the llc name, so it’s still okay for me to report under my personal other income?

IsabellaGAnswer

That won't matter, because the LLC is a disregarded entity, unlike a partnership or a corporation, and its income is your income. In this case, the $200 isn't self-employment income, so you can report it as personal income. But the truth is that since it's only $200 (and your only income relating to the LLC), it's below the amount at which you'd pay self-employment tax. So no matter where you reported it you would wind up with the same amount of tax.

In your case, since the business didn't even start until this year, it's fine to report it as Other Income.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"