Repaying investors via a new business
Hello, I had two businesses. The first, Business 1, a film production company, received investments and was closed, with the investors taking a loss. The second business, Business 2, continues some of the work of Business 1, as well as other projects. Business 2 just received a modest windfall. I'd like to share those proceeds with investors who took a loss on Business 1. Do I need to pay them as consultants or contractors via a W9 / then a 1099-MISC?
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