S corp receiving 1099? Should my client revise it to my business name?

Yes, you should definitely ask your client to correct the 1099. It should be issued to your business name with your business EIN, not to you personally with your SSN. This is important for proper tax reporting and to maintain the separation between you and your business entity. Your S corporation should receive 1099-NEC forms (or other appropriate 1099 forms depending on the type of payment) from clients when they pay your business more than $600 in a tax year. Even though the income will ultimately flow through to your personal tax return via Schedule K-1 from your S corp, the initial payment documentation should recognize your business as the entity providing the services. This helps maintain the corporate veil and supports the legitimacy of your S corporation structure with the IRS. It also keeps your business accounting cleaner by ensuring all revenue is properly attributed to the business first, before flowing to you personally.

I went through exactly the same headache last year with my consulting business. After hours of research and frustration, I found this AI tool called taxr.ai (https://taxr.ai) that analyzes all your business documents and tells you exactly what needs to be fixed for your specific business structure. I uploaded the incorrect 1099 and it immediately flagged that it should be issued to my business EIN instead of my SSN. The tool also generated a template email I could send to my client requesting the correction, explaining the proper legal requirements. My client fixed it right away since the request came with actual tax code references. It also clarified all the forms my S corp should be receiving and provided a checklist for my particular situation. Saved me so much time compared to all the generic advice I was finding online.

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My accountant was telling me the same thing about needing business 1099s for my S corp, but when I tried calling the IRS to confirm, I spent TWO HOURS on hold before giving up. Finally used Claimyr (https://claimyr.com) and got through to an actual IRS agent in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that yes, all 1099s should go to my business with the EIN, not to me personally. They also explained that having personal 1099s instead of business ones could potentially trigger an audit since it looks like you're not reporting income to the S corp properly. The agent was super helpful and even emailed me the official guidance for my records. Wish I had known about this service years ago instead of wasting entire days on hold!

I need to eat my words about Claimyr not working. After my skeptical comment, I decided to try it myself for my S corp situation. I was absolutely SHOCKED when I got a call back connecting me to an actual IRS agent. The agent confirmed everything about proper 1099 handling for S corps and actually helped me understand how to properly request corrections from my clients. I've been doing my taxes wrong for years! Turns out I should have been having all my 1099s issued to my business EIN, and the agent explained that this mixed reporting could be why I got a weird letter from the IRS last year about income discrepancies. They even helped me understand what documentation I need to keep to prove the income went to the business even if the 1099 had my personal info. This service literally saved me from what could have been a much bigger issue. Still can't believe it actually worked!

Your S corp should receive 1099-NEC forms with your business name and EIN. For the 1099 that was issued to your personal SSN, you should definitely request a correction. Otherwise, you'll need to do some extra documentation to match that income to your business records. Remember that an S corp files Form 1120-S, and then issues you a Schedule K-1 (Form 1120-S) showing your share of the business income. Since you're the only shareholder, that would be 100% of the profits. That K-1 income then gets reported on your personal tax return. Don't forget you should also be paying yourself a reasonable salary as an S corp employee, which requires running payroll and issuing yourself a W-2.

Has anyone dealt with clients who refuse to correct 1099s? I've had two clients say they already submitted to the IRS and can't change it now.

This is a really common issue for new S corp owners! You're absolutely right to want the 1099 corrected. Here's what I've learned from dealing with this same situation: 1. **The 1099 should definitely go to your business** - It needs your business name and EIN, not your personal SSN. This maintains the proper separation between you and your business entity. 2. **Your client can file a corrected 1099** - They just need to check the "corrected" box on a new 1099-NEC form. Don't let them tell you it's impossible once filed. 3. **For future reference**, make sure your contracts and invoices clearly show your business name and EIN. This helps clients get it right from the start. 4. **Documentation is key** - Even if you can't get all 1099s corrected, keep detailed records showing how you properly reported the income through your S corp to maintain the corporate structure. The main thing is establishing that pattern of business-to-business transactions rather than personal service income. It's not just about taxes - it's about maintaining the legitimacy of your S corp structure. Good luck getting it sorted out!