Do LLC Partnerships Get 1099? IRS Rules Explained for OnlyFans Creators

Do LLC partnerships get 1099 forms when earning OnlyFans income? In many situations, yes. Whether a Form 1099 is required depends on the LLC’s tax status under Internal Revenue Service rules, not on the business name or state registration.

This guide is for OnlyFans creators who have formed LLC partnerships and want to understand when they should expect to receive or issue 1099 forms under IRS rules. For OnlyFans creators earning consistent business income, this distinction affects how you pay taxes, calculate taxable income, and stay compliant during tax season. Many creators form a limited liability company expecting simplicity, but misunderstand how reporting payments and pass-through taxation actually work. Getting this right early helps avoid penalties and unexpected tax bills.

What a Form 1099 Means for Business Income

A Form 1099 is a tax form used to report income paid for services when employment taxes were not withheld. It allows the IRS to track business income that falls outside payroll systems. For creators, this often includes income paid by agencies, brands, or professional services tied to content creation.

Receiving a 1099 does not mean income tax or self-employment taxes were paid. It only confirms that income paid was reported to the IRS. That amount must still be included on tax returns and counted toward total tax liability.

How the IRS Determines an LLC’s Tax Status

Do LLC partnerships get 1099 reporting based on how the business is registered? No. The Internal Revenue Service looks at tax classification, not the LLC label itself. A single-member LLC is treated as a disregarded entity. A multi-member LLC is classified as a partnership unless it elects S corporation or C corporation status.

Both single-member LLCs and partnerships are pass-through entities. That means the business does not pay federal income tax directly. Instead, income flows through to the owners, who report it on their personal tax returns.

When an LLC Partnership Receives a 1099

An LLC taxed as a partnership generally receives a Form 1099-NEC when it is paid for service payments during the tax year. If income paid by one business reaches $600 or more, reporting is usually required.

This applies to non-employee compensation, professional services, and independent contractor arrangements. For OnlyFans creators, this often includes income from management companies, content agencies, or brand partnerships. Personal expenses and non-business payments are excluded.

Form 1099-NEC Versus Other 1099 Forms

Form 1099-NEC is used to report non-employee compensation. It is the most common tax form creators encounter when receiving business income. If a business pays a partnership or single-member LLC for services, this is typically the form issued.

Form 1099-MISC applies to other income types. This includes rent payments of $600 or more, royalties of $10 or more, prizes, legal fees, medical fees, and certain settlements. While less common for creators, it still applies in specific situations.

The $600 Reporting Threshold Explained

Do LLC partnerships get 1099 forms automatically once they earn income? No. Reporting usually begins once income paid by a single payer reaches $600 during the tax year. This threshold applies per payer, not total gross income from all sources.

The $600 rule is based on income paid, not net income. Business expenses, tax deductions, and tax write-offs are applied later when calculating taxable income and income tax owed.

Why Corporations are Treated Differently

LLCs taxed as corporations are generally exempt from receiving 1099 forms. This includes both C corporations and S corporations. The IRS assumes corporate income is already tracked through corporate tax returns.

There are exceptions. Payments for legal services and certain medical services must still be reported, even when paid to a corporation. Legal fees are the most common exception that many business owners encounter.

How S Corporation Elections Affect 1099 Reporting

When an LLC elects S corporation tax status, it is no longer treated as a partnership. The IRS treats it as a corporate business entity for federal income tax purposes. In most cases, this removes the requirement for others to issue Form 1099-NEC for service payments.

This change can reduce self-employment tax liability, but it introduces payroll taxes and additional tax obligations. For creators earning higher monthly income, the tax implications should be reviewed carefully with a tax professional.

Self-Employment Tax and 1099 Income

If an LLC receives a 1099 and is taxed as a partnership or single-member LLC, that income is subject to self-employment taxes. The self-employment tax rate is 15.3 percent, covering Social Security and Medicare taxes.

This tax applies to self-employment income reported on 1099 forms. It is separate from federal income tax and often catches self-employed individuals off guard.

Estimated Taxes and Quarterly Payments

Because no taxes are withheld from 1099 income, creators must pay quarterly estimated taxes. These quarterly payments cover income tax and self-employment tax liability throughout the year.

Failing to pay quarterly can result in IRS penalties and interest. Many creators underestimate this obligation during their first high-income tax year, leading to a large tax bill at tax time.

When Payments are Reported on Form 1099-K Instead

If an LLC partnership receives payments through credit cards or third-party payment processors, those payments are generally reported on Form 1099-K instead of Form 1099-NEC. This is common for platform-based payments.

The reporting form does not change tax obligations. All business income must still be reported, regardless of which tax form is issued.

When an LLC Must Issue 1099 Forms

LLCs also have responsibilities as payers. If an LLC pays $600 or more to an independent contractor during the tax year, it must issue a 1099 form. This applies to payments made to individuals, partnerships, and single-member LLCs.

Payments for rent, royalties, legal services, medical services, or prizes may require Form 1099-MISC. Accurate reporting helps ensure income is reported correctly.

Collecting Form W-9 and Backup Withholding

To issue a 1099, businesses must collect a completed Form W-9 from vendors. The W-9 confirms tax classification and provides the taxpayer identification number needed for reporting.

If a vendor fails to provide a correct W-9, backup withholding may apply. In those cases, the payer may need to withhold taxes at 24 percent and remit them to the IRS.

Recordkeeping and Accounting Systems

LLCs must keep accurate records of all payments made to vendors and independent contractors. This includes tracking income paid, taxpayer identification numbers, and payment dates.

Using accounting software and tax software helps reduce errors. Clean records support accurate tax returns and reduce the risk of IRS penalties.

Penalties for Failing to File Accurate 1099s

Failing to file accurate 1099 forms can result in IRS penalties. Filing errors or late submissions can lead to fines of up to $270 per form. Intentional disregard carries higher penalties.

Accurate reporting is critical to avoid penalties and compliance issues. Many business owners underestimate how quickly penalties add up.

Common Mistakes OnlyFans Creators Make

This is where many OnlyFans creators get it wrong. Some believe forming an LLC removes the need to pay self-employment tax. Others assume income is not taxable if no 1099 is issued.

All business income must be reported. The IRS compares tax returns against third-party data. Mismatches frequently trigger notices and audits.

Why Working with a Tax Professional Matters

Tax regulations around partnerships, pass-through entities, and reporting payments are complex. As income grows, mistakes become more expensive.

A tax professional helps creators manage tax obligations, plan quarterly payments, and reduce tax liability legally. This support becomes critical as business structure and income streams expand.

FAQs

What happens if I send a 1099 to an LLC taxed as a corporation?

Most payments to an LLC taxed as a corporation do not require a 1099 under IRS rules. Legal services and certain medical services are exceptions where reporting is still required. If a 1099 is issued by mistake, it can usually be corrected by filing an amended form with the IRS.

Do LLC S-corporations get a 1099?

In most cases, LLCs taxed as S corporations do not receive Form 1099-NEC for service payments. The IRS generally exempts S corporations from 1099 reporting requirements. Exceptions apply for payments such as legal fees or other specific regulated services.

Do you 1099 an LLC?

Whether you issue a 1099 to an LLC depends on how the LLC is taxed for federal income tax purposes. LLCs taxed as partnerships or single-member LLCs usually require a 1099 for service payments of $600 or more. LLCs taxed as corporations typically do not require 1099 reporting.

Does a partnership get a 1099?

Yes, partnerships commonly receive Form 1099-NEC when they are paid $600 or more for services by another business. This includes LLCs that are taxed as partnerships under IRS rules. The reporting requirement applies to non-employee compensation paid during the tax year.

Conclusion

Whether an LLC partnership receives a 1099 depends on its tax classification under IRS rules, not on how the business is labeled or registered at the state level. Partnerships and single-member LLCs are typically subject to 1099 reporting for service income, which directly affects how creators calculate taxable income, self-employment taxes, and federal income tax owed throughout the tax year. Because 1099 income is reported without withholding, creators must also plan for estimated taxes and quarterly payments to avoid penalties. Having a clear understanding of these reporting requirements helps creators stay compliant, reduce errors on tax returns, and maintain better control over cash flow during tax season.

At The OnlyFans Accountant, we help creators understand how LLC partnerships, 1099 reporting, and self-employment taxes work in real situations. We support OnlyFans creators with income reporting, estimated taxes, partnership tax returns, and compliance planning. Contact us to review your business structure and confirm your tax obligations before tax season.