If you are an S-corp, recently the IRS has required that you must pay yourself reasonable compensation, meaning you need to pay yourself through a W-2. Paying yourself through a 1099 is not reasonable compensation, it must be a W-2.
You can pay yourself through a W-2 without making money, but that may be a red flag to the IRS. In order to get deductions such as the qualified business income deduction, you need to be running a business with the intentions of earning a profit. We suggest you earn money. If the business has any income or expenses other than start up expenses, a business tax return must be filed.
If you just have 2 sole proprietor LLC's, they both can be reported as schedule C's on your personal tax return (1040).
If you have a S corp, you must file an 1120-S. In order to be a 1120-S, you must file Form 2553, election to become a S corp, and the IRS will send you an S corp approval letter, informing you regarding what date you are a S corp. You must file a S corp return for that tax year, unless all you have are start up expenses.
