“I received 1099 misc for income that should have been payable to corporation.”----> A Form 1099 additionally is not utilized if the services are being provided by a corporation (and, by extension, a limited liability company elected to be a S- or C corp). Some independent contractors set up their own corporations or LLC through which they transact business. If that is the case, the presumption is that a Form 1099 is not utilized to report payments to such a freelancer provided the payments are made to and in the name of the legal entity. If an LLC conducts business where it is paid for services, then the LLC should properly be issued a 1099 for services paid to it.So, actually, if the LLC has registered as a corporation, then you would not be required to issue a 1099-MISC. If it's a sole proprietor (i.e., a disregarded entity) or partnership, then you would be required to issue a 1099. 1099s are given to sole-proprietorships but not corporations. Some payments are not required to be reported on Form 1099-MISC, although they may be taxable to the recipient. Payments for which a Form 1099-MISC is not required include: Generally, payments to a corporation,Unfortunately, the "not corporations" is not a hard and fast rule. There is no IRS 'rule' that indicates that you shouldn't send a 1099 to a corporation. However, you are only required to send a 1099 as well as Individuals/Sole Proprietors and Partnerships. They don't have to give a corporation a 1099, but if it is a very large item on their profit and loss statement, they can def give a 1099.
“ How can I transfer it to Corporation?”---> If the income was paid to you, and reported on a 1099, you cant have it transferred to your corp. You might ask the issuer why they are sending Forms 1099 to a corporation, as they're not required. I don't know if that's right or wrong, but there are no penalties for issuing a 1099 where one isn't required. Companies that make payments to a corporation are not required to send a 1099 form, although some companies will still issue these forms. 1099 forms are only required to be sent if the payments are being made to attorneys/independent contractors who are not formally established as a corporation. |