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I have about 78k in 1099 income that was made out to me personally. I also recently formed an LLC with the election to be taxed as an S-corp - can I report this 1099 income as revenue to the LLC, rather than as Schedule C income? Or somehow convert it to LLC revenue? Can I pay my LLC somehow perhaps?

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It’s a good question

However, both money paid directly to you and money paid to your LLC will be showing up on your Schedule C on the 1040 (unless you’ve elected S-Corp status for your LLC?)

If your LLC is not an S-Corp, it makes very little difference, as it will all flow through Schedule C.

If your LLC IS an S-Corp, you should contact your client and ask them to amend the 1099 with your correct information. Send them the W9 that has your EIN rather than your SSN. But technically, if you are an S-Corp, the client wouldn’t need to issue a 1099 in the first place (assuming you are neither a lawyer nor a healthcare professional).

Hopefully that helps!

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  • All income for a single-member LLC is self-employment income. For an S-corp, 60% of income might be salary and 40% of the income might be dividend. However, some sources say that a single-member S-corp could be determined to be a disregarded entity just like a single-member LLC.
    – S Spring
    Dec 4, 2022 at 3:00
  • Both the answer and @SSpring's comment are incorrect and misleading. One cannot "amend" 1099, 1099 is issued to the entity that was paid. The OP was paid as an individual, so I doubt anyone would go about backdating contracts to change the 1099 to a non-existent at the time S-Corp. As to the comment - there's absolutely no rule that 40% of the income could be reported as dividend. If all the income is earned through the personal services of the OP - why would not all of it be characterized as salary? Any such mischaracterization without proper justification would be fraudulent tax evasion.
    – littleadv
    Dec 4, 2022 at 5:18
  • @littleadv none of the 1099 income was salary, because I was not an employee. It does seem pretty clear that LLCs taxed as an S-corp do in fact pay members in dividends, or more accurately "distributions", as long as it is a "reasonable" amount, though people all seem to define 'reasonable" differently. Why are you suggesting otherwise?
    – number41
    Dec 4, 2022 at 5:56
  • collective.com/blog/money-management/…
    – number41
    Dec 4, 2022 at 6:02
  • wolterskluwer.com/en/expert-insights/…
    – number41
    Dec 4, 2022 at 6:02

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