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Level 3
December 7, 2019
Solved

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

  • December 7, 2019
  • 1 reply
  • 29 views

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?

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Best answer by George4Tacks

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. 

1 reply

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.
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