Created a sole member LLC 2010 to manufacture and sell bioreagents for medical research labs. Profit for 2010 is 150K. Sent myself a 1099-MIS and files tax return as independent contractor without claiming self-employment tax. Last week received a letter from IRS, asking adjustment of self-employment tax plus penalty. Do I have to pay self-employment tax? I got confused. My friend told me that I do not need to file self-employment tax 'cause I received a 1099-MIS and can be treated as an independent contractor. Can someone in this forum help m out by replying this post? Many thanks!!!
