GloriaL
Expert Alumni

Business & farm

No, a shareholder in a corporation does not make you self-employed.  

  • As shareholders, owners receive distributions from the profits of the company.
  • Some S corporation owners work in the business, and they are taxed as employees for this work and receive a W2

For additional information regarding compensation from an S Corporation where you are a shareholder, please see: IRS: Procedures for Compensation