1. Limited Liability Companies (LLCs) and 1099s The Resourceful CEOTM: 1099 Video Series

2. Overview ALL LLCs must file 1099s for applicable independent contractors.ALL LLCs must receive 1099s for applicable work.Rule applies in ALL cases: LLC files as corporation; LLC files as partnership; LLC files as sole proprietorship (disregarded entity). http://www.Cash4Impact.com/1099-guide 3. LLC - Overview Limited liability company - legal business structure that operates separately from its owners. Laws recognize LLCs as entities independent of its owners. Form your LLC at the state level - file articles of organization with secretary of state. http://www.Cash4Impact.com/1099-guide 4. LLC Status Single-member LLC: Default: File as sole proprietorship (disregarded entity). File as a corporation.Tax Form Filing: As sole proprietorship, LLC's owner tracks revenues and expenses on Form 1040 Schedule. Partnership files form 1065. Corporation files form 1120.Multi-member LLC: Default: File as partnership. File as a corporation.Status has no bearing: Corporations exempt, but LLCs filing as corporations are not. Corporations have higher admin and reporting requirements.http://www.Cash4Impact.com/1099-guide 5. 1099-MISC et al Your LLC must mail 1099-MISCs to all applicable businesses and individuals paid $600 or more. Must submit 1099-MISC summary form to the IRS. (See What Entity Gets 1099s) Send 1099-Bs to businesses your LLC engaged in barter transactions of >= $600 in value.Send 1099-Cs to businesses for which cancelled debt of >= $600.Additional 1099s exist but usage is rarer. If uncertain, check with IRS or your.Must also file these 1099s with the IRS. http://www.Cash4Impact.com/1099-guide 6. The W-9 Information Form Sign a contract for services of $600 or more Receive a W9. Official W-9 name? Request for Taxpayer Identification and Certification Requests pertinent information: Complete and sign. EIN Legal business name Address Not valid unless signed.Customers use the W-9 information to create the 1099. http://www.Cash4Impact.com/1099-guide Request the same form from 7. Tax Return Include revenue denoted on your LLCs1099s. When file your LLC's tax return, attach a copy of all 1099 statements. The IRS double checks the 1099s in its database against tax returns. If the IRS detects a discrepancy: May request additional information. May be subjected to penalties and fees for underreporting. http://www.Cash4Impact.com/1099-guide 8. Key Concepts & References For more information and additional videos, visit Cash for Impact: http://www.Cash4Impact.com/1099-guide IRS: General Instructions for Certain Information Returns [http://www.irs.gov/pub/irs-pdf/i1099gi.pdf]IRS: Request for Taxpayer Identification Number and Certification [http://www.irs.gov/pub/irs-pdf/fw9.pdf]IRS: Forms and Associated Taxes for Independent Contractors [http://www.irs.gov/Businesses/Small-Businesses-&-SelfEmployed/Forms-and-Associated-Taxes-for-IndependentContractors]IRS: Limited Liability Company (LLC) [http://www.irs.gov/Businesses/Small-Businesses-&-SelfEmployed/Limited-Liability-Company-%28LLC%29]