Hi. I am filling out my CSS profile application right now and I don’t understand the difference between self-employed and business owner. My father owns a small business and he has two employees working for him. He is the only owner of that business. I have to submit that application before midnight. Please help me.
I am a business owner as my company is an S-corporation. I believe if the company is a S-corp or LLC then they are a business owner. If not then self-employed and that person most likely gets a 1099 from their clients for services rendered. @annoyingdad should be able to confirm.
I have an S-corp, and I treat it as a business (NOT self employed).
From a PROFILE perspective, the business would have an intrinsic value. So if there is capital equipment owned by the business, inventory, long-term receivables, business loans, factored invoices, etc., they would be evaluating it as a business.
If your dad is a consultant, and brings on a couple other consultants to help service all his clients, but has little overhead, no residual value-like brand recognition or goodwill- to the business, and little complexity, you could probably answer either way.
I don’t think you could go wrong answering as a business owner; but it may be simpler to evaluate the situation if it does fit into the “self-employed” subset.
This is my opinion. I would be interested to hear other opinions or others who have a more definitive definition.
If he has an S-Corp or a C-Corp, I don’t think you can “answer either way”. If you are going to form a business legal entity, you need to represent the correctly in the Profile. Even consulting businesses still need to list as a business if they are incorporated.
Can you be both self-employed and own a business? My father owns a small gym specifically. He is renting the space, but all machines, equipment etc are his.
My experience with a subchapter-S corporation is that banks, etc. that asked the question in the end wanted the answer “self-employed.” As I said, I am not sure it really matters.
For a business like a gym, where there is investment (capital equipment), employees, a rented space, and monthly invoicing/advertising/etc. I think it is a small business that your father owns. Your father and the other two are on the payroll of the business, and in addition (as owner), he can take “draws” against the profits.
You can be self-employed and own a business. You would own the business (however you own it- majority shareholder of a corporation, sole proprietorship, partnership, partner in a limited liability company, etc.) and would employ yourself to do the work. Strictly speaking, the business that you own would employ you. In practice, I have seen people consider single-employee service businesses to be “self-employed.”
Some of this ends up being opinion/interpretation. I am curious to read all the answers here!