payed out as 1099 vs K1

Discussion in 'Taxes and Accounting' started by cervie, Feb 4, 2021.

  1. cervie

    cervie

    I am looking at two funding deals where I could be paid out as either a 1099 or a K1? here for the debate. Seems pretty straightforward that K1 gets preferential tax treatment(I meet the TTS requirements) just want a little validation from the crowd here. Also, can and should I set up a small LLC entity (I know that a whole other conversation being that I will be taking on some office space towards the end of the year).
    Thanks guys!
     
  2. Overnight

    Overnight

    Sounds like a question for @BMK
     
  3. ph1l

    ph1l

    If you like accounting, ambiguous rules, filing tax returns late, amending tax returns for revisions, go for the K-1.