Originally Posted by villybhakta
#1;Why would the client send two 1099s? The client has a contract with the LLC and would send a single 1099(showing like $450k) to the LLC. The LLC would then send a different 1099 to my brother(showing $225k)
32;Then to do taxes, the LLC would use the 1099($450k) supplied by the client
My brother would use the 1099($225k) he was given from the LLC.
#1;OK I see sorry for my mistake/misunderstanding; I thought that as you said,” I am pursuing a contract with a client that is asking for two consultants. Each consultant will be billable to the client at 100/hr. I am one of the consultants and will bring my brother on as the other.
So the client will have and agreement with my LLC for two people and pay the LLC through a 1099 for the combined hours billed by both people. Both of us will be working independently and have different hours billed.” So,I thought that The client ‘d issue 2 1099s for you and your brother.
#2;Correct; then you need to issue a 1099 to your brother for $225K and claim the amt on your Sch C line 11.Your brother needs to report it on his Sch C.So the client sends a copy of the 1099/1096 to the IRS and you also need to send a copy of 1099 for $225K paidfor your brother and 1096 to the irs.