Thank you for your response. But I don't see what I am trying to do as monkeying around.
1. Customer wants to pay via 1099. I have no choice.
2. Reasonable salary per IRS guidelines - yes, this is well understood, nobody is going to work around it
3. Every s-corp I know about gets more from the customers than they are paying in salaries. So, how it is defrauding or working the system?
I just opened my LLC after I signed with the customer. In fact, it's still in the process of being created. And I cannot dictate the customer how I am paid.
So, I don't see any red flags there. From your response, it seems to be perfectly legal to subcontract the work to my own S-corp. Customer pays for the work done. He does not care about the workforce income levels.
As I understand, this is how home contractors operate when they given those 1099 for the job over $600.
And if I get audited, so be it. I will keep my records in order anyway
