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I get paid on 1099. But I also have an LLC registered in FL. Can I run the money I get monthly via LLC, as the LLC revenues? How do I file my taxes when I get 1099?

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March 25, 2025
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Best answer by ThomasM125

Thank you. I am still trying to get an answer to my question:

Can I subcontract all the work I am getting 1099 for to my S-corp? Basically, move every payment I am getting monthly - and for which I will get the 1099 next year - to my S-corp business account. Then my 1099 profit - and therefore tax - will be zero.
I don't need an advise to make my client pay to my S-corp or issue 1099 to my S-corp: this is not an option. They are using an intermediary who only deals with individuals. So, I will get a 1099 to my name. But I don't want to pay Social Security tax from the whole amount. I want to limit it to the salary I am paying to myself within my S-corp.

Seems like it should be a pretty common situation: home contractors get personal 1099 all the time when they do jobs worth > $600.
Thanks!

No, that would not be advisable. Since you and the S Corporation are related parties, there is no reason to "subcontract" the work to the S Corporation except as a tax saving strategy. As such, it would likely be disallowed by the IRS should you get audited. You would need a business purpose for the arraignment.

Furthermore, you are required to pay yourself a reasonable salary from the S Corporation. From the standpoint of the IRS, than amount would be equal to your distributions from the S Corporation. Your only allowable justification for paying yourself a salary for less than what the company earned would be if you were retaining money in the business for a particular need of the business, such as expansion, purchasing a building down the road or some similar endeavor. You can't simply pay yourself less than the net income of the business to avoid self-employment taxes.

V

Vanessa A

What is the 1099 for and what type of 1099 is it?

If the LLC is the reason you are getting the 1099, then yes, you would include this income on your LLC return. If you are a single member LLC and did not choose to be treated as an S-Corp, this would be entered on your Schedule C. You can do this using TurboTax Home and Business or TurboTax Premium.

If this income has nothing to do with the LLC type of work, then no, you would not include it with the LLC income. You would file a separate Schedule C that included the 1099 income for services performed.

If this is a 1099 that is for retirement, or something other than business related, you would not include it on Schedule C, instead you would enter it under the appropriate category in TurboTax. For example, if is it a SSA-1099, you would enter SSA-1099 in the search box then click JumpTo and enter it as retirement social security.

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Y

yn-mailboxAuthor

Thank you so much for replying! I was hired as an independent contract and will eventually get 1099, not sure what kind.
I also opened an LLC to use its tax advantages. The client does not care about my LLC and only works with me as an independent contractor, hence I expect a 1099 next year.

So, my question was if I can still treat these revenues I am getting as an independent contractor monthly as my LLC revenues for tax purposes?

KrisD15

A Limited Liability Company is not a tax entity, what tax form do you file for the LLC?

If you file Schedule C for the LLC, yes, you can merge and report as one if the business is of the same type, (consulting, painting, design....) as long as you are also a resident of Florida.

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