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Can I pay myself as a contractor instead of an employee?
Q: I am the sole owner of a C corporation providing consulting services. Can I pay myself a fee as an independent contractor rather than a salary as an employee?
A: Since you provide services to your corporation, you are an employee and generally cannot opt to treat yourself as an independent contractor. The question of independent contractor versus employee is one that draws a lot of IRS attention, so don't attract an audit by failing to treat yourself as the corporation's employee.
Some issues discussed in the expert forum are complex and continually changing.We recommend you consult a professional advisor about your specific circumstances, needs, and applicable laws. More details.
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