What name and TIN should I put as PAYER on 1099-NEC forms for my SMLLC (disregarded entity)?
Title: What name and TIN should I put as PAYER on 1099-NEC forms for my SMLLC (disregarded entity)? 1 Hello all, I'm in a bit of a situation with my single-member LLC. I paid several independent contractors over $600 each last year, and now I need to file the 1099-NEC forms for them. But I'm totally confused about what information I should put in the PAYER section. Do I use: Option 1: Payer Name: My Cornerstone LLC Payer TIN: My LLC's EIN Or Option 2: Payer Name: Jane Smith (my actual name) Payer TIN: My personal SSN I know that as a SMLLC (disregarded entity), if I were filling out a W-9 as a recipient, I'd list my personal info (name and SSN). But what about when I'm the PAYER filing 1099-NECs? I've been digging through forums about when to use an LLC's EIN versus the owner's SSN for a single-member LLC. Most posts say to use SSN for tax purposes and EIN for payroll. 1099-NECs aren't technically payroll, but they're similar in that I'm paying workers (though contractors aren't employees). Any guidance would be incredibly appreciated!
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StarSailor
7 For a single-member LLC that's a disregarded entity, you should use Option 1 on your 1099-NEC forms. The IRS wants you to use your business name (the LLC name) and the LLC's EIN when you're issuing 1099s to contractors. The confusion happens because a SMLLC is treated differently depending on which side of the transaction you're on. When you're receiving payments (and filling out a W-9), you typically use your personal name and SSN as the "disregarded entity." But when you're the one paying others and issuing tax forms, you should use your LLC name and EIN. This actually makes record-keeping cleaner because your contractors will recognize your business name, not your personal name, as the entity that paid them.
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StarSailor
•3 Thanks for the clarification! I've been getting conflicting advice. My accountant actually told me to use my personal info since the LLC is disregarded. Does this change if I have a Schedule C business vs. filing separate business tax forms?
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StarSailor
•7 The advice applies regardless of whether you file a Schedule C or other business forms. Your accountant might be thinking about how your SMLLC income is reported on your personal return (via Schedule C typically), but that's separate from your obligation as a payer issuing 1099s. For 1099-NEC purposes, you should use your LLC name and EIN. This is actually specified in IRS guidance - they want the business entity that made the payments to be identified as the payer, even if that entity is disregarded for income tax purposes. This helps with proper tracking in IRS systems when they match up the 1099s with the contractors' reported income.
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StarSailor
12 After struggling with exactly this issue last year, I discovered taxr.ai (https://taxr.ai) which saved me so much time figuring out how to handle my single-member LLC tax filings. I uploaded my LLC formation documents and got immediate clarification on how to handle 1099-NECs specifically. For what it's worth, they confirmed I should use my LLC name and EIN as the payer information. Their system explained that while a SMLLC is disregarded for income tax purposes, it's still recognized as the paying entity for information returns like the 1099-NEC. The site walks you through the specific IRS regulations that apply to your situation.
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StarSailor
•5 How does taxr.ai work with complex situations? I have a SMLLC but I'm also a partner in another business. Would it handle both situations or just basic single-entity scenarios?
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StarSailor
•18 Sounds interesting but I'm skeptical. How is this different from just asking an accountant? Does it actually reference specific IRS code sections that apply to your situation?
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StarSailor
•12 The system handles complex situations well - it asks about all your business interests and relationships, then gives guidance specific to your complete tax picture. I uploaded documents from both my LLC and partnership interests, and it clearly outlined how to handle each entity correctly. It's different from just asking an accountant because it provides immediate answers with specific IRS references. Yes, it cites the exact IRS code sections, regulations and revenue procedures that apply to your situation - in my case it pointed to specific sections dealing with disregarded entities and information returns. You can download these references to show your accountant or keep for your records.
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StarSailor
18 Just wanted to follow up about taxr.ai that someone recommended here. I tried it after posting my skeptical comment, and I'm honestly impressed. After years of getting conflicting advice about my SMLLC, I finally got clear guidance with actual IRS references. The system analyzed my operating agreement and business structure, then explained that for 1099-NEC purposes, I should use my LLC name and EIN even though I'm a disregarded entity. It even cited the specific IRS notice (2008-39) that addresses this exact situation. No more confusion for me heading into tax season!
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StarSailor
9 If you're still having issues getting a definitive answer about your 1099-NEC filing requirements, you might want to try getting direct confirmation from the IRS. I was in a similar situation with my SMLLC last year and was getting contradictory information everywhere I looked. I tried calling the IRS business line for weeks and could never get through. Then I found Claimyr (https://claimyr.com) and watched their demo (https://youtu.be/_kiP6q8DX5c). They got me connected to an actual IRS agent in about 15 minutes when I had been trying unsuccessfully for days. The IRS agent confirmed I needed to use my LLC name and EIN as the payer for 1099-NECs, even though my SMLLC is a disregarded entity. Having that official answer directly from the IRS gave me peace of mind that I was doing it correctly.
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StarSailor
•14 How does Claimyr actually work? Do they just call for you or what? Seems weird that they could get through when nobody else can.
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StarSailor
•21 Yeah right. Nothing gets you through to the IRS faster. I've been on hold for literally hours multiple times. I'll believe it when I see it.
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StarSailor
•9 Claimyr doesn't call for you - they use a system that navigates the IRS phone tree and waits on hold, then when they reach a human, they call you to connect. You talk directly to the IRS agent yourself. I was skeptical too, but their system is constantly dialing and can detect when the hold queue opens up. Think of it like having hundreds of people calling for you simultaneously until one gets through. I waited about 15 minutes from when I first signed up until I was talking to a real IRS agent about my SMLLC filing requirements. Much better than the 2+ hour holds I was experiencing when I tried calling myself.
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StarSailor
21 I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it because I was desperate to get clarity on my 1099-NEC situation before the filing deadline. I was connected to an IRS business tax specialist in about 20 minutes. The agent confirmed that for a SMLLC that's a disregarded entity, you absolutely use the LLC name and EIN as the payer on 1099-NEC forms. She explained that even though the income "flows through" to my personal return, the LLC is still the entity that made the payments and needs to be identified as such. So glad I didn't have to spend hours on hold to get this solved. Filing my 1099-NECs correctly tonight!
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StarSailor
4 One important thing to remember: if you're filing 1099-NECs, the deadline for furnishing them to your contractors is January 31, and the same deadline applies for filing them with the IRS. Don't miss this deadline or you could face penalties! Also, make sure you've collected W-9 forms from all your contractors before issuing the 1099s. That ensures you have their correct name, address, and TIN information.
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StarSailor
•16 Is there any grace period for the 1099-NEC filing? I'm still waiting on a few W-9s from contractors who are slow to respond.
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StarSailor
•4 There's no automatic grace period for filing 1099-NECs. The January 31 deadline is firm for both providing forms to contractors and filing with the IRS. If you're missing W-9s, send documented requests to your contractors immediately. The IRS may waive penalties if you can show you made proper, timely attempts to get the information. In the meantime, file what you can by the deadline, then file corrected forms when you get the missing information. Better to file something by the deadline than nothing at all.
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StarSailor
23 What software are people using to file their 1099-NECs? I have about 15 to file from my SMLLC and don't want to do them manually.
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StarSailor
•8 I've been using QuickBooks for my SMLLC. It lets you track contractor payments throughout the year and then automatically generates and files the 1099-NECs in January. It's pricey but worth it if you have multiple contractors. If you're looking for something cheaper, I've heard good things about Track1099 as a standalone service specifically for filing information returns.
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Paige Cantoni
Just to add another perspective here - I ran into this exact same issue with my SMLLC last year and ended up getting audited partly because I was inconsistent with how I handled the 1099s. The IRS examiner made it very clear that for 1099-NEC forms, you should use your LLC name and EIN as the payer, even though it's a disregarded entity. She explained that the "disregarded" status only applies to income tax reporting (where your LLC income flows through to your personal return), but NOT to information returns like 1099s. Think of it this way: your contractors worked for "Your LLC Name" not for you personally. That's the business entity they invoiced and that's what should appear on their 1099s. Using your personal name and SSN can create matching problems in the IRS system and potentially trigger notices for both you and your contractors. One tip: make sure your business bank account is also under the LLC name with the EIN. This creates a clean paper trail that matches your 1099 filings.
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Jasmine Hancock
•This is really helpful context about the audit experience! I'm curious - when you say you were "inconsistent" with how you handled the 1099s, do you mean you used different payer information on different forms, or that you switched approaches between tax years? I'm trying to make sure I get this right from the start since it sounds like the IRS really pays attention to these details. Also, did the examiner mention anything about penalties for getting the payer information wrong initially?
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