| “IRS says I can file a 1099misc from myself to the new c-corp. Will this cause double taxation or does this transfer the tax liability to the c-corp only?”---->Agreed;as long as you want to convert the income on the 1099misc to business income for your NEW C corporation. You need to convert it.The simplest method would be to issue a 1099 from yourself to the C-corporation. This is not without risk unless the money was actually deposited in the C- corporate business account. Since the 1099 was issued to your name/SSN#, you’d list it and then list directly beneath it paid to third party as a deduction so that they offset. That way it does show up on your return where the IRS computer will be looking for it.
“ At year end I receive only 1099's with new EIN but total income equals total payments received as a whole I wouldnt need to 1099 from myself to c-corp, is this correct?”--->As said above.In particular, when you shut down the current entity and transfer the assets in a different C corporation.you do not structure the transaction properly, there will be a taxable gain/loss on the transfer of the assets to the new C- corporation. However, it is possible to structure the transaction as a tax free reorganization. This is a different story. However,as long as you provide some services for the C-corporation as a subcontractor and then the C-corporation may pay you for these services and issue the form 1099-misc.Generally such payment would be treated as an expense for the C-corporation and self-employment income for you.
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