I don't think the "shareholders" can be paid on a 1099 by a C-corp... they receive dividends on a 1099-div since they own stock in the company. Officers would be employees and are to be paid on a W-2.
<a rel="nofollow" target="_blank" href="
https://www.irs.gov/businesses/small-businesses-self-employed/paying-yourself">https://www.irs.gov/b...>
I highly advise you seek a qualified CPA &/or tax attorney to correct this mess.
