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Old 01-07-2017, 03:46 PM
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Exclamation Sole Prop LLC's

Do sole proprietor LLC's get a 1099 Misc?

This is for a bookkeeping service. The W9 says this person is an LLC-sole proprietor. However, this person has a FEIN.

I have researched this on the IRS website and I know things for LLC's have changed, but I am not sure about this.

Can you please clarify?



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Old 01-07-2017, 11:41 PM
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Do sole proprietor LLC's get a 1099 Misc?=>>Yes Sole pro LLC is also called SMLLC just like a regular sole propreirtoship filing Sch C of 1040; If a SMLLC does not elect to be treated as a corp, the LLC is a disregarded entity, and the LLC's activities should be reflected on its owner's federal tax return.



This is for a bookkeeping service. The W9 says this person is an LLC-sole proprietor. However, this person has a FEIN. I have researched this on the IRS website and I know things for LLC's have changed, but I am not sure about this.Can you please clarify?====>SMLLC owner needs a FEIN for federal income tax purposes; a SMLLC classified as a disregarded entity generally must use the owner's SSN or FEIN for all information returns and reporting related to income tax. For example, if a SMLLC owned by an individual is required to provide a Form W-9, the W-9 should provide the owner?s SSN or FEIN, . Therefore, an LLC will need an FEIN if it has any employees or if it will be required to file any of the excise tax forms ot if it needs to open a bank biz acct. Thus, most new SMLLCs classified as disregarded entities will need to obtain an FEIN.you can read the the W9 instr thenyou;d know it.



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