This is a very common issue in the industry. We will file a Schedule C listing the 1099 amount as income, then under other expenses we create an expense category called Income reported on LLC return ( EIN XX-XXXXXX) and list the same amount. That way the 1099 is reported and if the IRS looks at the return they see where you reported the income. The Schedule C will net to 0 so you won't be double taxed. We have done this for years for many financial planners and have never had an issue.Depositing in the individual account and then transferring is how you should do it. We always recommend to our clients to always transfer the whole amount so it is always a clean in and out.The SEC is the reason it must be in an individual's name so you won't have any luck getting it issued in a business name.
Could he create a company with his name XXXXX XXXXX, Inc dba The Best Financial Planner and deposit into that account since it is in his name? Then he would not have to transfer it? Would that be a good way to eliminate that step?
I can pay you for another answer...how do i do that?