Hello,
I recently received approval from the IRS to have my single-member LLC file as an S-Corp and they approved the effective date as of 1/1/2023. However, all year I have been an independent agent receiving commissions to me individually and I assume I will be receiving a lot of 1099s in early next year as I have for all the years I have been an insurance agent. Normally I have filed as a sole-pro LLC disregarded entity generating a Schedule C for all my 1099 income. However, now that I will be treated as an S-Corp retroactively to 1/1/2023, what will I do with all the 1099s sent my way for money earned this year? I have begun the process of sending new w9 forms to all my payors to attribute payments to my LLC and its EIN, but they all say it is not retroactive.
I have heard a couple of options- one is just still file a Schedule C and those 1099s for this year and they will be treated as SE as usual. However, I do also have to set up a payroll now for w2 wages as part of the s-corp requirement so will I be w2 for only part of the year even though the s corp election is retroactive to 1/1?
I guess I am confused as to how to handle this right now in terms of the payroll and the 2023 w2 I will have to generate as well as how this will be handled at tax time. I read somewhere there may be a way to 'nominate' the 1099 income I received to my LLC and then roll everything under the LLC EIN even if I receive 1099s to my SSN. Is this possible? Suggestions?
