My LLC S-Corp has 2 shareholders, myself and my husband. All the income that came in to the business in 2015 went right back out to the independent contractors, myself and another individual. On the 1120S do I enter all the income ( let's just say $10,000) in 1a and do I enter the same amount $10,000 in box 8 (deductions- salaries and wages)? I'm really confused how to do this correctly so that I won't get in trouble with IRS, and I have no money to hire a CPA to help.
I was thinking that I need to fill out a 1099-MISC for myself and the other individual so that we can pay for our own taxes as independent contractors. Is this correct? And I still need to file Schedule K-1 for myself and my husband since we are both shareholders right? And on those forms do I just enter $0? since I will be filing my own personal taxes from the 1099?