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If you choose to pay yourself as an independent contractor, you must file IRS Form W-9 with the LLC. The LLC then files IRS Form 1099-MISC at the end of the year. LLC members can also take a loan from the business.
For most businesses however, the best way to minimize your tax liability is to pay yourself as an employee with a designated salary. This allows you to only pay self-employment taxes on the salary you gave yourself ? rather than the entire business' income.
Service-provider (independent contractor): First name, middle initial, and last name. Social Security number. Address. Start date of contract (if no contract, date payments equal $600 or more) Amount of contract, including cents (if applicable) Contract expiration date (if applicable)
Sole proprietors and independent contractors are self-employed individuals who go into business without registering their business as a legal entity such as a corporation, a partnership, or a limited liability company (LLC).
Who Does My LLC Send a 1099-NEC To? You'll file a 1099-NEC directly with the IRS. You will also send a copy of the form to the business that you're filing it for. Several online services will allow you to electronically send and file 1099-NEC forms.