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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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If you have an LLC can you file a 1099 and a k-1, I have a

Customer Question

If you have an LLC can you file a 1099 and a k-1
JA: Thanks. Can you give me any more details about your issue?
Customer: I have a band. we have 7 partners. We have an LLC but no actual LLC agreement. I am curious if we filed 1099s for all the members do we also have to file a k-1
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Submitted: 9 months ago.
Category: Tax
Expert:  Lev replied 9 months ago.

The LLC with several members is treated as a partnership for income tax purposes.

In this case - the LLC will be file a partnership tax return - from 1065 - and will issue K1 statements to each partner - and each partner will use that information when individual tax return is prepared.

If the LLC pays to someone who is NOT a partner (not a member of the LLC) - and if that payment is above $600 - the LLC would need to issue form 1099misc reporting that payment.

Let me know if you need any help with reporting.

Expert:  Lev replied 9 months ago.

A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations.

Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC owner tax return (a disregarded entity).

An LLC that does not want to accept its default federal tax classification, or that wishes to change its classification, uses Form 8832, Entity Classification Election, to elect how it will be classified for federal tax purposes.

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When there are several owners (members) - and there were no elected differently the LLC is classified as a partnership.

That means - the LLC filed its own tax return on form 1065 and all income or losses were passed to partners on K1.

Then each partner will file his/her own tax return - and will report his/her share of rental income passed from the partnership.

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