Income Received Before Business Started

[SLC]

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.

[IRonMaN · Accepted solution]

An entity can't exist before it exists. You have a schedule C to deal with.

[SLC]

That's what I thought - thank you!

[IRonMaN]

You betcha!

[qbteachmt]

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.