LLC partnerships receive 1099s, but the form depends on how the LLC is taxed
An LLC partnership — formally called a multi-member LLC — does not automatically get a 1099. Instead, the form you receive depends on how you chose to have the IRS tax your LLC. Most multi-member LLCs are taxed as partnerships by default, which means the business itself does not receive a 1099. Instead, each owner gets a Schedule K-1, which reports their share of profit or loss. If your LLC elected to be taxed as an S corporation or C corporation, the rules change, and you may receive a 1099-NEC or 1099-MISC instead of a K-1.
The key point: the IRS does not care what you call your business structure. It cares how you chose to be taxed. That choice determines which form gets issued to you and your partners.
Key Takeaways
- A multi-member LLC taxed as a partnership receives Schedule K-1 forms, not 1099s, because the LLC itself is not treated as an employee or contractor.
- If an LLC partnership elects to be taxed as an S corporation, owners who work in the business and take a salary may receive a W-2, while distributions are reported on K-1.
- If an LLC partnership elects to be taxed as a C corporation, it may issue 1099-NEC or 1099-MISC to owners for certain payments, though this is uncommon.
- The form you receive is determined by your tax election on Form 8832 or Form 2553, not by your state business registration.
- You should receive your K-1 or 1099 by March 15 each year, along with a copy of the partnership or corporate return filed with the IRS.
How partnership taxation works for multi-member LLCs
When you form an LLC with two or more owners and do not make a special tax election, the IRS treats it as a partnership for tax purposes. This is called the default tax treatment. The LLC itself does not pay income tax and does not file a 1040 or 1099. Instead, the business files a Form 1065 (U.S. Return of Partnership Income) with the IRS.
Each owner's share of the profit or loss flows through to them on a Schedule K-1. You use this K-1 to report your share on your personal tax return (Form 1040). The K-1 shows your distributive share of ordinary business income, capital gains, deductions, and credits. It is not a 1099 form, and it is not issued to you as an employee or contractor — it is issued to you as an owner.
This pass-through structure is why partnership taxation is common for LLCs: the business does not pay tax, and you pay tax only on your share of the profit, whether or not you actually received cash that year.
When an LLC partnership elects S corporation taxation
Some LLC partnerships file Form 2553 with the IRS to be taxed as an S corporation instead of a partnership. This is a voluntary election. When you make this election, the LLC is still an LLC under state law, but the IRS treats it as an S corporation for tax purposes.
In an S corporation structure, if you work in the business, you must pay yourself a reasonable salary as an employee. You receive a W-2 for that salary, not a 1099. Any profit left after salaries and expenses is distributed to owners, and those distributions are reported on a Schedule K-1, just as in partnership taxation. You do not receive a 1099 for the distributions.
The reason some LLCs elect S corporation taxation is to reduce self-employment tax. When you are a partner, you pay self-employment tax on your entire share of profit. When you are an S corporation owner, you pay self-employment tax only on your W-2 salary, not on distributions. This can save money if your business is profitable, though the IRS requires your salary to be reasonable for the work you do.
When an LLC partnership elects C corporation taxation
An LLC partnership can file Form 8832 to be taxed as a C corporation. This is rare for small businesses because C corporations pay tax at the corporate level, and then owners pay tax again on dividends — creating double taxation. However, some businesses make this election for specific reasons.
If your LLC partnership is taxed as a C corporation, the corporation itself pays income tax on its profit. If the corporation pays you or another owner for services or goods, it may issue a 1099-NEC (for non-employee compensation) or 1099-MISC (for miscellaneous income). This would happen only if the corporation is paying you outside of a normal employment relationship — for example, if you are a consultant to the corporation you own, or if the corporation buys goods from you personally.
Most C corporation owners who work in the business are employees and receive a W-2, not a 1099. A 1099 from your own C corporation is unusual and typically signals a specific arrangement with a tax professional.
What form you should expect to receive
| LLC Tax Election | Form You Receive | When You Receive It |
|---|---|---|
| Partnership (default) | Schedule K-1 | By March 15 |
| S Corporation | W-2 (for salary) + Schedule K-1 (for distributions) | W-2 by January 31; K-1 by March 15 |
| C Corporation | W-2 (if employee) or 1099-NEC/1099-MISC (if contractor) | By January 31 |
The important date for receiving your K-1 is March 15 of the year after the tax year ends. The important date for receiving a W-2 or 1099 is January 31. If you do not receive the form by these dates, contact the person or business that should have issued it.
How to find out which tax election your LLC made
If you are unsure whether your LLC is taxed as a partnership, S corporation, or C corporation, check your records for the forms filed with the IRS. A partnership election requires no form — it is the default. An S corporation election requires Form 2553. A C corporation election requires Form 8832. If you filed either of these forms, you should have a copy.
You can also look at your prior-year tax return. If you filed a Schedule C (sole proprietor) or Schedule E (rental income), your LLC was taxed as a sole proprietorship. If you filed a Schedule K-1 with a Form 1065, your LLC was taxed as a partnership. If you filed a corporate return (Form 1120-S or 1120), your LLC was taxed as an S or C corporation.
If you still cannot find the information, ask the person who manages the LLC's accounting or the tax professional who prepared the return. They will know which election was made and can explain what form you should receive.
Frequently Asked Questions
Can an LLC partnership issue a 1099 to its owners?
Not under normal circumstances. If the LLC is taxed as a partnership or S corporation, owners receive K-1 forms, not 1099s. If the LLC is taxed as a C corporation and pays an owner for services outside of an employment relationship, it could issue a 1099-NEC, but this is uncommon and usually signals an unusual arrangement.
What if I own an LLC with one other person and we did not make a tax election?
Your LLC is taxed as a partnership by default. You and your partner should each receive a Schedule K-1 by March 15. The LLC should file a Form 1065 with the IRS. If you have not received a K-1 in prior years, contact your co-owner or the person handling the LLC's taxes.
Do I pay self-employment tax on my Schedule K-1?
Yes, if your LLC is taxed as a partnership. You pay self-employment tax on your share of ordinary business income reported on the K-1. If your LLC is taxed as an S corporation, you pay self-employment tax only on your W-2 salary, not on distributions.
What if my LLC partnership is not issuing K-1s?
This is a problem. A multi-member LLC taxed as a partnership is required to file a Form 1065 and issue K-1s to each owner by March 15. If this is not happening, contact the person responsible for the LLC's accounting. You may need to file your own tax return based on your ownership percentage and ask the IRS for a corrected K-1 if the LLC does not provide one.
Can I change my LLC's tax election?
Yes. You can file Form 2553 to elect S corporation taxation or Form 8832 to elect C corporation taxation. The election takes effect on the date you file it or on a date you specify. Changing your tax election can affect what forms you receive and how much tax you owe, so consult a tax professional before making the change.