A lot of folks misinterpreted this and I can't edit it.
A sole proprietorship, a single-owner LLC and an S-Corp are all pass-through to your personal income taxes. Meaning that in the eyes of the government you are still self-employed and need to file a 1099 and schedule C, even if you put yourself on payroll instead of paying out on draw.
I learned this the hard way.
What I'm saying is that even if you have a business entity you are still technically self employed. That is unless you have a C-Corporation or an LLC taxed as a corporation, in which case yes you can put yourself on payroll and do tax withholding and can legally be considered 'employed' by the company, however you get taxed double and face a number of costly state and federal requirements not to mention new overhead costs for legal and bookkeeping etc which is in most cases not worth it unless you are earning quite a lot of money.
But regardless, I don't know how much a mortgage company would care about such things. Maybe regular issue of a check from one company would be enough to suffice and I'm overblowing the issue...
A sole proprietorship, a single-owner LLC and an S-Corp are all pass-through to your personal income taxes. Meaning that in the eyes of the government you are still self-employed and need to file a 1099 and schedule C, even if you put yourself on payroll instead of paying out on draw.
I learned this the hard way.
What I'm saying is that even if you have a business entity you are still technically self employed. That is unless you have a C-Corporation or an LLC taxed as a corporation, in which case yes you can put yourself on payroll and do tax withholding and can legally be considered 'employed' by the company, however you get taxed double and face a number of costly state and federal requirements not to mention new overhead costs for legal and bookkeeping etc which is in most cases not worth it unless you are earning quite a lot of money.
But regardless, I don't know how much a mortgage company would care about such things. Maybe regular issue of a check from one company would be enough to suffice and I'm overblowing the issue...