I'm considering starting an LLC, but I'm not clear about the tax/document/filing issues for those people that the LLC pays.
I'd like to understand things better, so here are the various roles a person might have related to an LLC.
***the official LLC "manager"
...in a solo LLC managed by the only person in the LLC
...in an LLC with a official "manager" plus official "members"
***an official "member" of LLC ( i.e. non-manager )
***a non-member, i.e. someone who provides a service to the LLC
So .....in the roles mentioned above....
Who gets a 1099 for $600+ income received from the LLC in a given year?
And who ( if anyone ) files a Sched C along with personal taxes to record annual income/expenses for the LLC itself?
Are any of the roles noted above required to demonstrate payment from the LLC with a *different* tax form ( i.e not 1099, not Sched C...? ) If so, which role and what form?
Thanks for your help in clarifying who gets what and who files what in the LLC world...!
And now for the special bonus question
I have heard about potential tax advantages of an S-Corp over an LLC ( i.e. possible reduction in employment taxes for those being paid ) ... but in my case, the LLC would have low annual revenue and will only be paying $500-$5,000 per year to manager and/or members ( if any ). Do the employment tax advantges of an S-Corp disappear when the amount paid to manager/members per year is less than a typical annual salary?
Thanks again for your help with either of these issues....very much appreciated!!