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If you have an S Corp than you can receive the Form 1099 income in S Corp instead of your name. So in that case you will be able to claim the income in S Corp and not report it on your personal Sch C.
In order to give that out as dividend, the corp will have to be a C Corp. That may not be advantageous as a C Corp will be taxed on the income first and than the dividend that you receive will also be subject to tax. If immediate profits are distributed as dividend that you will not be able to get the benefit of 15% tax rate too.
If you leave it as a S Corp than you will report the income and expenses on Form 1120S and the income from S Corp will flow onto your personal tax return via a K-1 and subject to tax.
And hence, with S Corp double taxation can be avoided.
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Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.
The advantage of running it through S Corp is that you can get some liability protection and than you can take a reasonable salary from S Corp and balance as a distribution of profit and save some self employment taxes. If you receive it personally than the entire net income from this activity will be subject to self employment tax.
You can participate in retirement plans such as SEP or 401K plana nd hence reduce your taxable income. If you do it in S Corp and your spouse is also involved in the activity than you and your spouse can take payroll and contribute to retirement plan such as self employed 401K or SEP or similar plans. If you have bought any furniture fixtures or equipments, you can depreciate these(or take a section 179 writeoff) and hence reduce your taxes.