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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 3991
Experience:  Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
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We are a small tutoring business. We advertise tutors on our

Resolved Question:

We are a small tutoring business. We advertise tutors on our website, market their skills, and then take a commission on each session they perform. They are in charge of setting up sessions, collecting payment, and communicating with customers. Do we need to send them a 1099 or are they responsible for reporting all earnings.
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

NPVAdvisor :

HI,

NPVAdvisor :

If they are collecting the payment and just sending you the commissions, they they should just report the income on thir Schedule C

NPVAdvisor :

(and you will report your, depending on your business entity)

NPVAdvisor :

I', assuming that the tutors are essentially sole proprietorships ad ahven't set up an entity

Customer:

Yes, that is correct

NPVAdvisor :

That's reakky it, ten ... If you collected the entire amont someone could make a case that you should 1099 but as they are collecting their commission is just a business expenses for them

Customer:

Ok...great. Thank you very much!

NPVAdvisor :

Quick questons .. are you a corp (s_corp, C-Corp, etc)?

Customer:

LLC

NPVAdvisor :

THen you're find... they won't need to send YOU a 1099 either

NPVAdvisor :

(sorry for the typos) ... "find"

NPVAdvisor :

Fine

Customer:

Awesome! Thank you.

NPVAdvisor :

YW, have a great evening!

NPVAdvisor :

If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.


HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question.

Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 3991
Experience: Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
Lane and 4 other Tax Specialists are ready to help you
Expert:  Lane replied 1 year ago.

Thanks for the rating Bill.

If you'd like to work with ME again just say "For Lane only," at the beginning of your next question.

Thanks again,
Lane
Customer: replied 1 year ago.

Yes...if I have further questions I'll contact you!

Expert:  Lane replied 1 year ago.

Thanks much!

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