by Jeff Franco J.D./M.A./M.B.A.
As a baby business owner, you should be acquainted of your abeyant filing obligations with the Internal Revenue Service in accession to assets tax returns. If you hire or charter business property, such as an office, you may charge to book a 1099-MISC advice acknowledgment to abode the anniversary hire payments you make. This obligation to book a 1099-MISC charcoal the aforementioned behindhand of whether the freeholder is a bound accountability company, an alone or some added blazon of business entity.
Filing a 1099-MISC applies alone to the hire you pay for business acreage – not your claimed property. Moreover, a 1099-MISC isn’t all-important unless you pay $600 or added in hire during the year. This $600 claim applies to absolute anniversary hire payments – not monthly. For example, if you hire a baby appointment in city Phoenix for $200 per month, your obligation to book a 1099-MISC will bang in afterwards you pay the third rental acquittal for the year.
When your absolute hire payments crave a 1099-MISC, you will aboriginal charge to appeal a W-9 anatomy from the LLC that leases the acreage to you. A W-9 anatomy is all-important because it allows you to aggregate advice about the LLC that the IRS requires to be appear on the 1099-MISC. Otherwise, the IRS wouldn’t be able to bout the rental assets to the LLC. You don’t charge to book the W-9 with the IRS, but you should analysis it for accurateness afore advancing the 1099-MISC. If your freeholder is a single-member LLC that’s a abandoned article for tax purposes, acceptation the IRS treats the affiliate as a sole proprietor, the member’s Social Security cardinal or an employer identification cardinal it has acquired different to the LLC should be listed forth with the owner’s acknowledged name. For all added LLCs, the business name and its EIN should be reported.
Filling out the 1099-MISC afterwards the aing of the tax year is adequately straightforward. You will alteration the anecdotic advice from the W-9, such as the LLC’s name or member’s name, the abode and the accordant Social Security cardinal or EIN. Then afterwards artful the bulk of hire you paid during the year, you will abode the absolute in box 1.
Since the IRS requires that you accouter a archetype of the 1099-MISC to the LLC by Jan 31 in the year afterwards the accordant tax year, you’ll charge to accept these advice advertisement tasks completed rather quickly. However, the IRS doesn’t crave its archetype of the 1099-MISC until the aftermost day of February, or if you book electronically, until April 1.
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