codeblue123
Level 3
‎06-15-2021 02:09 PM

Client wants to setup an LLC for his insurance agency because he is adding a partner.  Business has been run as a Sch C.  How do we structure their new LLC business entity, when they will still receive 1099-MISC/NEC in their own social security number?  Their commissions can only be paid in the SSN of the individual who sold the policy.

Labels
0 Cheers
PhoebeRoberts
Level 11
Level 11
‎06-15-2021 03:15 PM

That sounds like an attorney question to me. Insurance guys are always wanting to assign income to some other entity.

codeblue123
Level 3
‎06-15-2021 04:56 PM

I guess my question is, can they setup a partnership even though their income will be reported with their social security number?  If they setup the LLC with multiple members then it would default to a partnership.  How do insurance companies with multiple agents setup their business entities?

0 Cheers
sjrcpa
Level 15
‎06-15-2021 05:59 PM

I've seen LLCs, 1120S and 1120.


The more I know the more I don’t know.