SLC
Level 1
03-10-2020
10:37 AM
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I have a client who is a consultant for a company and is paid on a 1099. During the 2019 tax season he became an LLC and will apply to file as an S-Corp. Is the income he received before becoming an LLC counted in the LLC income or will that be a schedule C?
Thank you in advance for your help.
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IRonMaN
Level 15
03-10-2020
10:43 AM
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An entity can't exist before it exists. You have a schedule C to deal with.
Slava Ukraini!
SLC
Level 1
03-10-2020
10:45 AM
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That's what I thought - thank you!
IRonMaN
Level 15
03-10-2020
10:57 AM
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You betcha!
Slava Ukraini!
qbteachmt
Level 15
03-10-2020
12:46 PM
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LLC income is the same, Sole Proprietorship Sched C.
You don't have an S Corp until you file the election paper with the starting date and the IRS accepts it. You stated "will apply" so that means we are a bit late to make this an S Corp with Payroll in 2019.
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