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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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I created my own LLC (I was the only employee). I was than

Customer Question

I created my own LLC (I was the only employee). I was than hired by a Indian consulting company "SYNTEL"
to work as a project manager at a financial services firm. I decided to go 1099 and NOT W2.
I than had to get another firm "Technosoft" to process my invoices with "Syntel". Technosoft was charging me $4.00/per hour per billed hours. I would send my hours for the month to "Technosoft" who would than bill "Syntel". Syntel would pay "technosoft" and technosoft would than send me a check for the difference.
I than run my payroll thru ADP to pay me and all my taxes.
Technosoft sent me a 1099-MISC box #7 and ADP sent me a W2. My LLC now shows income (with no taxes being paid)
and I show wages on my W2. How and where do I deduct the wages from my LLC so I don't double count. ALSO, the 1099 box#7 and my W2 earning don't agree...
Submitted: 8 months ago.
Category: Tax
Expert:  Lev replied 8 months ago.
We need to clarify HOW that LLC is classified for income tax purposes?A Limited Liability Company (LLC) is a business structure allowed by state statute.Each state has its own business law .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 s tax return (disregarded entity).So - if that is a single member LLC - all income and deductions must be reported on your individual tax return.In this case - there should NOT be any payrollIf the LLC with several members - it is classifie das a partnership and compensation to partners is NOT reported on W2 eaither.However - if you specifically elected your LLC to be taxed as a corporation - in this case you are correct - and the corporation pays you wages for your services.Please clarify your situation.Let me know if you are willing to discuss your situation over the phone.
Expert:  Lev replied 8 months ago.
Please provide additional details about your situation - so we may continue our conversation.Please verify your email as I send you an offer for phone conversation.