Ask Experts Questions for FREE Help !
Ask
    cameron_taylord's Avatar
    cameron_taylord Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 11, 2009, 09:37 AM
    1099 and 1096 income reporting
    I am a business of owner, incorporated as an LLC. My partner and I are in the business of alternative medicines like performing colonics and reselling supplements.

    We, the owners, perform these professional services ourselves and have paid ourselves over $600 each last year. We also allow contract professionals to set up business at our site. We collect the customer's payments and keep a percentage of contractor sales for the business.

    I know that if any of the contract workers made over $600 last year, we need to complete a 1099 and report their income to theIRS.

    But does my partner and I need to complete a 1099 and file a 1096 with information about our income as well?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 26, 2009, 02:37 PM
    Negative. The money you pay yourself is considered SALARY paid to you as employees of the LLC, which, based on your posting, should be reporting as a partnership (Form 1065).
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Can I file IRS 1096 and 1099 printed on blank paper [ 1 Answers ]

I need to file with IRS one form 1099 for 2008 with form 1096. May I print these forms on white paper or must I print use the preprinted "red" scannable forms?

1099 reporting for services rendered by corporations [ 1 Answers ]

Greetings I am incorporated and provide software consulting services under my corporation's umbrella and also have employees that work for the corporation.I have a client that had me complete a w9 form for the corporation at the beginning of the work but at the end of the year did not sent me a...

Employer reporting reimbursements on a 1099? [ 1 Answers ]

I received a 1099 from my employer that included every expense for which I was reimbursed, such as flights to business meetings, hotels etc... The employer's accountant said I should just deduct the entire 1099 amount as an expense. Is this right? Isn't the 1099 supposed to be used to report...

1099 Reporting - Safe Harbor / 1st Year [ 3 Answers ]

I've been reading a few posts on this site to get a general idea of 1099 reporting expectations and tips for quarterly payments (estimates) and comparable bill rates. Thanks to all for helpful info! One thing - I couldn't get a handle on the clock for the "safe harbor" for 1st year reporting...

Reporting income less than $600, not reported on 1099 MISC [ 2 Answers ]

I worked for a company and earned less than $600 so they did not send me a 1099. Do I have to report this income anyway?

View more questions Search