You can have the RS or WS on the outside when knitting in the round. If the WS is outside, just flip it inside out.
Rather than slipping the sts onto a circular needle, it's probably easier to just knit them onto it and that way the RS will be facing out. So work the 43 sts of the left sleeve, then 21 on the front, 20 sts, then 21 sts on the other front, 43 from the other sleeve and finally the 62 back stitches. The next couple rounds will secure the body and sleeve sts while decreasing the stiches.
sue- knitting heretic