ProAdvisor
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Re: Pass through expenses

If you are using the subcontractor to do the work and the income generated is the same, then it is a wash.  Yes, your income will be higher but the corresponding expense will be higher.  You put the expense for the subcontractor under subcontractor expense.  You do not have to change your tax entity to have a subcontractor work for you or provide them with a 1099.  Your social security number will be the tax ID.

 

And yes, you are required to give this person a 1099 at year end for monies you paid them for this work.  Here is a link to the info from the government regarding 1099 subcontractors.