@qbteachmt  wrote:

"None of the Above. You mark that it is an S Corp, and an S Corp is Exempt from 1099-NEC reporting. You enter the Corporate name and FEIN.

Box 1 Corp.

Box 3 LLC as S Corp.

That's part of why I commented: need to understand what "operating as an S Corp" means, include how to properly sign papers, payroll, etc."

Thank you. I read the fine print under the LLC box and I now understand why that would not apply.

I don't know if there is an IRS letter accepting that there is an S Corp. but I suspect not. I have seen the IRS FEIN letter for the LLC. Would there be a new letter issued after IRS accepted there was an S Corp or will same LLC FEIN still apply?  

No one has been running payroll for 2021. Client found new CPA in Oct 2021 (friend of husband's) and CPA advised client to sign up with ADP and run her own (single person) payroll in Dec 2021 to save on SE taxes. It's been very "informal" from what I can tell. 

To your point about the client understanding what it means to have an S Corp, I totally agree. I suspect the CPA has not covered it with her. 

Thanks again for your feedback. It's much appreciated.