So, if a company hires someone (part-time, traditional W-2 setup) ... can that person be paid through his/her LLC? ?
Ex: can the corporation switch to pay through the LLC bank account etc? (Please let me know if this is unclear.)
- Ron AkiaLv 73 months ago
If you are an employee you will be paid and issued a W-2. 1099's are only used for independent contractors whom do work for them.
- ?Lv 76 months ago
Usually employers do direct deposits to an on line checking / savings account. If you don't have direct deposit then you will get a paper check, that you have to put into your account your self.
- Anonymous6 months ago
I used a W2 form as toilet paper
- DevorealLv 66 months ago
If the company is a corporation and they hire someone who has an LLC and that person wants to be paid through their LLC then that person becomes a 1099 contractor and the payments are made to their LLC and not to their name. No taxes are withheld and they are responsible for making their own tax payments.
They are also not protected by employee-employer laws...which means they can be let go at any time for no cause.
If the company is a corporation and the corporation owns an LLC and the company wants to pay the person out of the LLC funds and not the Corporation funds then that can happen, but the person becomes an employee of the LLC. Their Job is to deal with corporate matters for the LLC.
Just remember that the more complicate you make it...the higher the chance is for you to be audited.
- How do you think about the answers? You can sign in to vote the answer.
- Wayne ZLv 76 months ago
So, the employee has an LLC and landed a traditional W2 job and they want to be paid through the LLC. Correct?
The answer is "No".