I got a new client who has no TIN or SSN. Received money via LLC set up in someone else's name, she is a member.Do the LLC taxes need to be filed in her friend name only?

Forum|Forum|6 years ago
December 7, 2019
2 replies
23 views

She set up an LLC in her friends name but added herself as a member by name and address only. Can she claim her own taxes by paying herself a 1099-MISC but has no social security number. Or does her friend have to file these taxes and claim this income as a Schedule C?

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Best answer by sjrcpa

The LLC needs to file a partnership return since it has 2 members (I think-your facts are sketchy as is the client)

Your client needs to get an ITIN if she is not eligible for a SSN. Your client will get a K-1 from the LLC. 1099-MISC is not appropriate for an LLC member.

sjrcpaAnswer

Level 15

The LLC needs to file a partnership return since it has 2 members (I think-your facts are sketchy as is the client)

Your client needs to get an ITIN if she is not eligible for a SSN. Your client will get a K-1 from the LLC. 1099-MISC is not appropriate for an LLC member.

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

itonewbie

Level 15

Sounds like your client is a nonresident alien. If so, the partnership will have various withholding and reporting requirements, even on US-ECI. Your client will need an ITIN for that and for individual tax filing.

---------------------------------------------------------------------------------Still an AllStar

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