I own 75% of my company and I get W-2 income. Am I considered self-employed?
AI accountant’s answer:
While you're not considered self-employed in the traditional sense, owning 75% of your company and receiving W-2 income means you're a significant shareholder and employee in your business. Typically, self-employed individuals receive income through 1099 forms and need to pay self-employment taxes. Since you're receiving W-2 income, your employer (the company) withholds income tax, Social Security, and Medicare taxes from your paycheck, and you won't have self-employment taxes to pay.
A tax pro reviewed this answer:
It depends on what the structure of the company is. If it's an S corp or C corp, then this answer is correct. But if it is an LLC taxed as a sole proprietorship, then all income could be subject to self-employment tax.
Not Correct.
Keeper’s AI Accountant V2
V2 is still a fine-tuned instance of GPT-4. Improvements over V1 include more comprehensive tax code embeddings, and a better chain-of-reasoning retrieval system.