Form 1120

[Cspica59]

First year in business

I have a c corporation which I thought was a different entity until I called IRS so I did not do payroll.

I now have to file form 1120 having received a 1099 NEC .

1. Do I list this as salary or compensation (I did receive the money as income)

2. What do I do about the no payroll issue...Issue myself a form?

@members

[RobertB4444]

If the 1099-NEC was issued to you personally then you can file as a sole proprietorship for this year and skip the 1120 and the payroll issue.  

If the 1099-NEC was issued to the Corporation then you should enter everything into your 1120 return - the 1099, all of your expenses etc., and then issue a 1099-NEC from the corporation for the net income to you personally.  You can't go back in time and do the payroll properly but this way you will pay payroll tax on all of the net income and that should be good enough.

The rules state that officers of the corporation must be paid a fair wage for all the work that they do for the corporation.  So for next year you should be tracking your hours and drawing a paycheck.  

@Cspica59