I have an S corporation. I paid an independent contractor fees for his services. He has given me a W-9 with an EIN number for a business and requested the 1099-Misc to go to the business EIN (an LLC). However, all of the checks I made out went to him personally. Can I issue the 1099 to the business or do I need to issue it to his social security number since the checks were made to him personally?

ANSWER

The BIDaWIZ Team's Answer:

Generally, if the completed W-9 Form shows an EIN number and an LLC business name, then the 1099-MISC should reflect that information. However, is the LLC taxed as a sole proprietorship? If not, this would be concerning. If it is taxed as a sole proprietorship, it's possible that the LLC does business as the owner's name via a DBA, although it's usually the reverse (i.e business owner does business as XYZ LLC). We would confirm with the contractor that they are taxed as a sole proprietorship. If they are, then you should use the EIN and LLC business name as provided. This is referenced in IRC Section 6041 and IRS Publication 1220.