The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/4-i-provide-consulting-services-and-my-clients-13942596.aspx

Subject:  Re: Some S-Corp Questions Date:  12/20/2000  1:59 PM
Author:  Helter Number:  43169 of 120792

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.

Helter


Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us