Tax, SDIRAs & Cost Segregation
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 6 years ago,
Issuing a 1099 for more than $600 of lawyer fee
I am aware of the requirement to issue a 1099-MISC to your lawyer when you are paying him more than $600 per year. However I am confused about the following situation:
I have a holding multi member LLC with its own EIN.
This holding LLC owns multiple single member LLCs, that also have their own EIN. These single member LLCs are disregarded entity for the IRS.
Now lets say that each of these sub LLCs are paying the lawyer $200.
The total of all the lawyer fee will be over $600, but each LLC would be under.
Should I issue anyway an 1099-MISC from each sub LLC for $200 under its own EIN, even if it is under $600?
Should I issue a global 1099-MISC from the holding LLC EIN, even if each invoice was issued for each sub LLC, risking confusing the lawyer CPA?