Does C Corp issue K-1?

Forum|Forum|2 years ago
May 9, 2024
1 reply
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I have C Corp. I have 1099 to contractors. Does it issue K-1 to owners?

TurboTax Business Windows

Anonymous_

Level 15

@stech wrote:

I have C Corp. I have 1099 to contractors. Does it issue K-1 to owners?

No, not C corporations. The only type of corporation that issues a K-1 is an S corporation.

stechAuthor

Level 6

So owners are paid via draws?

Anonymous_

Level 15

Shareholders are the owners of C corporations.

If they (or others) perform services for the corporation, they are typically compensated with a salary/wage (they're employees of the corporation as such).

Otherwise, payments made to shareholders by C corporations are dividends (or return of capital in certain instances).

Please don't take this the wrong way but if you do not have a rudimentary knowledge of the foregoing you need to consult with a local tax professional.