Can the owner of a company be an employee?

Many business owners assume that because they receive a salary, they should pay income tax on that salary as if they were an employee. The owner in such a case is not an employee, and must therefore pay self-employment tax.Click to see full answer. Also question is, can an owner of an LLC be an employee?Those who own an LLC are considered to be owners or members under state laws. If you are an owner you obviously do work for and with the LLC, but you are not considered to be an employee. In general, LLC owners are paid a percentage of the profits of the company, not salaries or wages.Secondly, can you be your own employee? Because the corporation is not disregarded, if you work for an LLC you own, classified as a corporation, you may be considered an employee as defined by the Internal Revenue Code. This means the corporation will have to pay half the employment taxes on any income you earn while you pay the other half. In this manner, can you be employed by your own company? If you work for your own limited company, then your company is your employer. You will normally be a director of the company and so will be responsible for registering the company as an employer. Any salary or benefits you have will need to be taxed under PAYE.How do you become a part owner of a company?In order to qualify as a co-owner in a business entity, the partners must have personal ownership of company-issued stock certificates. Personal liability of a co-owner is limited to the number, type, and value of company-issued stock owned. Remember, co-owners have the right to management.