LLCs don't automatically get 1099s — it depends on the tax structure you chose

A limited liability company (LLC) is a legal structure, not a tax structure. The IRS doesn't have a "1099 for LLCs" box. Instead, your LLC is taxed as a sole proprietorship, partnership, S corporation, or C corporation — and that choice determines whether you receive a 1099 and what kind.

Most single-member LLCs are taxed as sole proprietorships by default, which means you don't receive a 1099 from your own business — you report income on Schedule C. Multi-member LLCs are taxed as partnerships by default, and partners don't receive 1099s either. But if you've elected to be taxed as an S corp or C corp, or if someone pays your LLC for services, the rules change.

Key Takeaways

  • A single-member LLC taxed as a sole proprietorship does not receive a 1099; you report business income on Schedule C of your personal return.
  • A multi-member LLC taxed as a partnership does not receive a 1099; instead, the partnership issues a Schedule K-1 to each partner showing their share of income.
  • An LLC taxed as an S corporation may receive a 1099-NEC or 1099-MISC if someone pays it for services, but the LLC itself also pays you a W-2 for wages.
  • An LLC taxed as a C corporation receives a 1099 if it is paid for services, and the corporation files its own tax return separate from yours.
  • If you are a member of an LLC but not the owner, you may receive a 1099-NEC or Schedule K-1 depending on the LLC's tax structure and how you are compensated.

Single-Member LLCs and the Default Tax Treatment

By default, the IRS treats a single-member LLC as a disregarded entity — meaning it ignores the LLC structure for tax purposes and taxes you as a sole proprietor. You and the business are one taxpayer. Because of this, you don't receive a 1099 from your own LLC.

Instead, you report all business income and expenses on Schedule C (Profit or Loss from Business), which you attach to your Form 1040. You pay self-employment tax on that income using Schedule SE. This is the same as if you were a sole proprietor without an LLC.

The only time a single-member LLC receives a 1099 is if someone outside the LLC pays it for services. For example, if your LLC provides consulting and a client pays your LLC directly (not you personally), that client may issue a 1099-NEC to your LLC. You would then report that income on Schedule C.

Multi-Member LLCs and Partnership Taxation

A multi-member LLC is taxed as a partnership by default. Partnerships do not receive 1099s. Instead, the partnership files Form 1065 (U.S. Return of Partnership Income) and issues a Schedule K-1 to each member showing their share of income, losses, deductions, and credits.

You use the Schedule K-1 to report your share of partnership income on your personal return. The partnership itself pays no income tax; the income is "passed through" to you. You are responsible for paying income tax and self-employment tax on your share, whether or not the partnership distributed cash to you.

If an outside party pays the partnership for services, they issue a 1099-NEC to the partnership, not to individual members. The partnership reports that income on Form 1065, and it flows to members through the Schedule K-1.

LLCs Taxed as S Corporations

If you file Form 2553 with the IRS, you can elect to have your LLC taxed as an S corporation. This changes how you receive income and what documents you receive.

As an S corp owner, you must pay yourself a reasonable salary as an employee and issue yourself a W-2. You also pay payroll taxes (FICA) on that salary. Any profit beyond your salary is distributed to you as a dividend, and you report it on your personal return using the Schedule K-1 the S corp issues.

If someone pays your S corp for services, they issue a 1099-NEC to the S corp. The S corp reports this income on Form 1120-S and it flows to you through the Schedule K-1. You don't receive a separate 1099 as an individual owner — the K-1 is your record of S corp income.

LLCs Taxed as C Corporations

If you elect to have your LLC taxed as a C corporation by filing Form 8832, the LLC becomes a separate taxpayer. The corporation files its own return (Form 1120) and pays corporate income tax on its profits.

If someone pays your C corp for services, they issue a 1099-NEC to the corporation. The corporation reports this income on Form 1120. If the corporation pays you a salary, it issues you a W-2. If it distributes profits to you as dividends, those dividends are reported to you on a Form 1099-DIV.

As the owner, you don't receive a Schedule K-1 from a C corp; instead, you receive a W-2 for wages and possibly a 1099-DIV for dividends. You pay income tax on both, and the corporation has already paid corporate income tax on its profits.

When You Receive a 1099 as an LLC Member

If you are a member of an LLC but not the sole owner, whether you receive a 1099 depends on your role and the LLC's tax structure. If you work for the LLC as an employee, you receive a W-2, not a 1099. If you are a non-employee member who receives distributions or may provide payments, you receive a Schedule K-1 from a partnership-taxed LLC.

If you are an independent contractor hired by the LLC (not a member), the LLC issues you a 1099-NEC if it pays you $600 or more in a year. This is true regardless of the LLC's tax structure.

How to Know Your LLC's Tax Structure

Check your business records for Form 2553 (S corp election) or Form 8832 (C corp election). If you filed neither, your LLC is taxed under the default structure: sole proprietorship if you're the only member, partnership if there are multiple members.

You can also check with your accountant or the IRS by calling 1-800-829-1040. Have your Employer Identification Number (EIN) ready. The IRS can confirm which tax structure is on file for your business.

Frequently Asked Questions

Do I need to issue a 1099 to my LLC if I pay it for services?

Yes, if you pay an LLC $600 or more in a calendar year for services, you must issue a 1099-NEC to the LLC. The LLC's tax structure doesn't change this requirement. Report the LLC's name and EIN on the form.

Can I receive both a W-2 and a 1099 from the same LLC?

Yes, if the LLC is taxed as an S or C corporation. You receive a W-2 for wages you earned as an employee and a 1099-NEC or 1099-MISC for non-employee compensation, or a 1099-DIV for dividends. Report both on your tax return.

What if my LLC received a 1099 but I thought it wouldn't?

This usually means someone paid your LLC for services and issued a 1099-NEC to it. Report the income on your tax return using the form your LLC received. If the income is wrong, contact the payer and ask them to issue a corrected 1099.

Does my LLC need an EIN to receive a 1099?

Yes. If your LLC is a sole proprietorship, you can use your Social Security Number, but the payer may still issue a 1099 to your EIN if you provided one. Multi-member LLCs, S corps, and C corps must have an EIN and will receive 1099s under that number.