If the W-2 is from a third party, that does NOT go on Schedule C.  That person is an employee.

If the owner issued himself a W-2 for his business, that is wrong and the W-2 and payroll forms should be amended to $0.

"I read to check statutory box on the W2."

You only do this if the Issuer of that W2 has already done this. Your job is to enter the W2 info as it was presented to you. You don't change what you enter based on how you think something needs to be treated; you are entering what was reported.

A SMLLC owner is not their own employee for Sched C operations. Who issued the W2? Is the employer on that form this Owner's own entity? That's the first answer you need to give, to move this topic forward.