I need some accounting help here--who should I give my 1099s to?
I am a marketing consultant with an LLC and I work alone. I sell event sponsorships for a local business who is the promoter of the events. I receive 20 percent on anything I sell. Many times I negotiate with the customers and they are billed for the sponsorship through my LLC. Once I am paid by customers, I immediately pay the promoter the sponsorsip money and I take my 20 percent. Do I have to give the promoter a 1099 on the money I gave them? Would it be better to have the promoter bill the customer and the promoter pay me? Please advise!
1099's are for services paid to non-incorporated businesses and individuals for services greater then $600 in a calendar year. So if you are paying your promoter for their services and they are not incorporated, then they should receive a 1099.
Sound tax and accounting procedures are essential to growing a financially secure company. But multiple hiccups threaten the accuracy of these processes, elevating the risk of compliance penalties and reputational harm.