- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
PPP Sole Proprietorship/1099 Question
Posted on 7/12/20 at 1:13 pm
Posted on 7/12/20 at 1:13 pm
I have a small side business (it's an LLC) I own. I bill my time and cut myself a monthly check as an independent contractor (my title is President). At the end of the year, I cut myself a check for some of the profits. I have to keep money in it because the float time from big purchases until I get paid.
I have successfully received EIDL grant money, but I was reading that 1099s can submit personally too. Is this true for my situation as well?
I have successfully received EIDL grant money, but I was reading that 1099s can submit personally too. Is this true for my situation as well?
5
Posted on 7/12/20 at 1:50 pm to Tiger Attorney
Was this business negatively effected by Covid?
Posted on 7/12/20 at 2:02 pm to Tigerpaw123
Went down to zero orders since. So I would say yes
Posted on 7/12/20 at 3:17 pm to Tiger Attorney
I don’t think that 1099 employees are allowed for PPP
Posted on 7/12/20 at 4:53 pm to Tiger Attorney
LLC should not give 1099s to its members. If the LLC elected to be taxed as a C Corp or S Corp, you should be a W-2 employee of the LLC.
Contact a CPA immediately.
With that being said, self employed individuals are eligible for PPP loans.
Contact a CPA immediately.
With that being said, self employed individuals are eligible for PPP loans.
Posted on 7/12/20 at 5:25 pm to cfotiger
A partner at a very reputable firm in New Orleans has done my company taxes for 10 years.
This post was edited on 7/12/20 at 6:52 pm
Posted on 7/12/20 at 5:29 pm to cfotiger
Curious why you are not getting a K1, but not my forte
Posted on 7/12/20 at 7:26 pm to Tiger Attorney
Employed 1099s can’t get it if their employer gets PPP. But the 1099 worker can apply for it himself using his schedule c.
Posted on 7/13/20 at 7:13 am to Tiger Attorney
You are likely mistaken OP but I’m not a CPA. It’s pass through income through a k1 and not a 1099. You as the owner/ president get a k1, 1099s are for third parties not involved in your LLC or it would be a K1.
As said once you move to being a Corp you are either an employee, owner getting a k1, or a 1099 independent contractor. As far as I know a 1099 can’t have direct involvement with the company.
ETA: yeah as said already if the company got Eidl and you are the owner/ president that’s where your fed money came from. You can’t double dip here far as I know.
That would be like getting PPP money and then laying yourself off and collecting unemployment. Which actually is more possible, but still a bad idea.
As said once you move to being a Corp you are either an employee, owner getting a k1, or a 1099 independent contractor. As far as I know a 1099 can’t have direct involvement with the company.
ETA: yeah as said already if the company got Eidl and you are the owner/ president that’s where your fed money came from. You can’t double dip here far as I know.
That would be like getting PPP money and then laying yourself off and collecting unemployment. Which actually is more possible, but still a bad idea.
This post was edited on 7/13/20 at 7:16 am
Posted on 7/13/20 at 8:06 am to baldona
Yes. Agreed when you look at it like that.
I already have a call into my CPA this morning with questions.
I already have a call into my CPA this morning with questions.
Posted on 7/13/20 at 10:30 am to Tiger Attorney
I don't wish to argue with you, but I had a tax practice for over 20 years.
The law is very clear; you should not receive a 1099 from an LLC in which you are an active member.
Call your tax return preparer and discuss this issue with him/her. A partner with a NOLA firm having done your company taxes for 10 years means very little.
The law is very clear; you should not receive a 1099 from an LLC in which you are an active member.
Call your tax return preparer and discuss this issue with him/her. A partner with a NOLA firm having done your company taxes for 10 years means very little.
Posted on 7/13/20 at 4:40 pm to cfotiger
Yeah, you got something messed up on how you are setup. K1 is the normal way and yes you can get up to 15kish in PPP money if you make over 100k.
Posted on 7/14/20 at 7:34 am to Tiger Attorney
You are set up receiving a 1099 from an LLC you own? I dont' know about legal wise or anything, but it seems like an unnecessary step at a minimum.
MY LLC receives a 1099 from my primary contractor and I applied for and received a PPP based on my 2019 income from that 1099.
MY LLC receives a 1099 from my primary contractor and I applied for and received a PPP based on my 2019 income from that 1099.
Posted on 7/14/20 at 8:14 am to Sneaky__Sally
Yeh. I was wrong. My accountant set me straight yesterday. I totally flipped some things around between two businesses.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News