@mark-makuch wrote:
....I see things that say 'you're subject to SE tax', but nothing that specifically says 'you may NOT pay yourself as an employee' and it would be helpful to be able to point people to such a thing. Do you have a cite, or are you like me and you just have always trusted that this is so?
There is no definition of "employee" in the Code, to the best of my knowledge, but an individual is deemed to be an employee if that person meets the requirements set forth in Treas. Reg. §31.3401(c)-1.
I would also refer you to Rev. Rul. 87-41.
Further, I doubt whether the IRS could more clear on this issue in the following topic relating to partnerships.
https://www.irs.gov/businesses/small-businesses-self-employed/partnerships
