How should buyer report sale of LLC units

[Linda Mathey]

The purchaser (corporation) of my client's LLC units prepared a 1099 Misc for my client (seller) showing proceeds as non-employee compensation. That does not seem correct. If they are to prepare a reporting form what should they use to report sale proceeds from LLC units? It looks like the best choice is 1099B.

Thanks for any input.

[RoyDaleOne]

Was the buyer a stock broker? If not no 1009-B.

There is no form to report same. The 1099 Misc is completely wrong and should be refiled as zero.

The sale of an LLC interest (assuming no election to treated as corporation) is treated the same as the sale of a partnership interest.

To complex to explain on this board.

The LLC should be providing some information.

[Linda Mathey]

No, the buyer was a corporation. I will request they revise the 1099 Misc to reflect $0.

This brings up another question since both original members have sold to the corporation does this terminate the LLC? Or does the LLC continue with a single member (corporation). If yes and they file Form 8832 and elect to be taxed as a corporation would there be a short period return (1065) thru date of sale and then a short period corp return for 2007? What if the corporation did not file the 8832 within 75 days of purchase how would they report income or loss on their return?

Sorry for all the questions but my mind just starts running in circles.

I appreciate the feedback.