Skip to main content
Level 3
December 7, 2019
Solved

Can a C-corp shareholder be paid as a subcontractor?

Can a C-corp shareholder be paid as a subcontractor? I know they can take Dividends payment and be on salary but can they be paid as a subcontractor and report the income on a Schedule C?

This topic has been closed for replies.
George4Tacks
Level 15
December 7, 2019

Can? Yes. Legitimately? Maybe. https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee and also look at your state. California has just set new standards. 

Answers are easy. Questions are hard!

8 replies

George4Tacks
Level 15
December 7, 2019

Can? Yes. Legitimately? Maybe. https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee and also look at your state. California has just set new standards. 

Answers are easy. Questions are hard!
abctax55
Level 15
December 7, 2019
Very, very onerous standards....that are already being challenged.  It's gonna' be interesting.
HumanKind... Be Both