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Financial Planning / Tax Strategies


Subject:  Re: Some S-Corp Questions Date:  12/20/2000  1:59 PM
Author:  Helter Number:  43169 of 127613

4) I provide consulting services, and my clients have submitted 1099's for compensation paid to me in years past. Will they continue to file a 1099 (or some similar form) for compensation paid to my corp?

Depends. A payor is not obligated to complete & file a 1099 when payment is being made to a corporation; although many payors choose to do so anyway.

I'd be very careful about 1099's - many consulting agencies don't understand taxes very well and are confused by corp-to-corp arrangements. Make sure you sign all contracts as My Name, President of my corp - and provide your corp EIN(tax id) NOT your Social Security Number - if they have your SSN and issue a 1099 - then it looks like you're a sole proprietor and things will be all messed up. I refuse to give the agents/pimps/body shops my SSN for this reason.


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