Hello,
I am working on filing for an S-Corp. The business did not make enough money to pay wages to the owners (i.e. none of the owners took a salary, and there weren't any distributions). One owner gave up his share of the company, but was paid a commission for a customer he brought to the company during the year. What is the correct way to report his sales commission? Other income on the K1, or also give him a 1099? Something else?
Thank you.
