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

[loboacounting]

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?

[George4Tacks · Accepted solution]

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

[abctax55]

Very, very onerous standards....that are already being challenged.  It's gonna' be interesting.

[George4Tacks]

Interesting is a very sneaky way to lyft my knowledge to it's über heights.

[abctax55]

(LOL - you've been on a roll lately... ):joy:

[George4Tacks]

I need to be, I may be in the dark for the next two days. PG&E has me on their hit list for loosing power.

[abctax55]

Come to Tahoe...I think we are going to be OK.  Plus I have tandem Honda generators that will run most of my office.

[George4Tacks]

That only works if there are enough gas stations with power between here and there for me to fill up my tank. I think I will just sit here in the dark. We have candles. Wife & I were joking about how to light the gas stove with electric igniter. Will the toilets still flush? ... I think we can entertain ourselves. My wife will be going through withdrawal without her sewing machine.

[Accountant-Man]

If you are "loosing" power you need to get a little tighter. Wine?