# Is the CEO an employee?

**URL:** <https://boards.straightdope.com/t/is-the-ceo-an-employee/117155>\
**Category:** Factual Questions\
**Created:** [July 3, 2002, 3:34am UTC](https://boards.straightdope.com/t/is-the-ceo-an-employee/117155 "2002-07-03T03:34:17Z")\
**Posts on this page:** 7\
**Page:** 1

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**Author:** ![mangeorge](https://avatars.discourse-cdn.com/v4/letter/m/d78d45/32.png) [@mangeorge](https://boards.straightdope.com/u/mangeorge)\
**Post date:** [July 3, 2002, 3:34am UTC](https://boards.straightdope.com/t/is-the-ceo-an-employee/117155/1 "2002-07-03T03:34:17Z")

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Like Bill Gates, for example.  
Or, better yet, Dave O’Reilly of Chevron. Or any one of those guys.  
Are they employees, legally, and in the same sense that I am?  
Just wondering. 🙂  
Peace,  
mangeorge

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**Author:** ![Reeder](https://avatars.discourse-cdn.com/v4/letter/r/c6cbf5/32.png) [@Reeder](https://boards.straightdope.com/u/Reeder)\
**Post date:** [July 3, 2002, 3:48am UTC](https://boards.straightdope.com/t/is-the-ceo-an-employee/117155/2 "2002-07-03T03:48:34Z")

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If he is paid by the company, he is an employee.

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**Author:** ![mangeorge](https://avatars.discourse-cdn.com/v4/letter/m/d78d45/32.png) [@mangeorge](https://boards.straightdope.com/u/mangeorge)\
**Post date:** [July 3, 2002, 11:36pm UTC](https://boards.straightdope.com/t/is-the-ceo-an-employee/117155/3 "2002-07-03T23:36:08Z")

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> [@](#):
>
> \*Originally posted by Reeder \*  
> \*\*If he is paid by the company, he is an employee. \*\*

I guess it is just that simple, isn’t it. I have trouble identifying with that.  
So everybody involved in the company is an employee. Except the stockholders who _aren’t_ employees of course. The Board, too.  
So even in a small business, if incorporated, the sole owner is an employee?  
Weird.  
In 1995 the division I worked in had slightly over 200 workers, most pretty well paid. That same year the CEO made more than all of us combined. Much more. A real valuable guy. He’s dead now.  
We all rot, eventually, don’t we. Don’t know why that make’s me feel better.  
😛  
I’m not even sure why this is wafting around in my mind. Gettin’ old.  
Peace,  
mangeorge

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**Author:** ![Boyo\_Jim](https://avatars.discourse-cdn.com/v4/letter/b/87869e/32.png) [@Boyo\_Jim](https://boards.straightdope.com/u/Boyo_Jim)\
**Post date:** [July 4, 2002, 1:52am UTC](https://boards.straightdope.com/t/is-the-ceo-an-employee/117155/4 "2002-07-04T01:52:27Z")

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The owner of a business is not necessarily an employee. The owner can choose to self-pay a salary or wage, or not. The owner can take the profits of a business without being on the payroll.

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**Author:** ![mangeorge](https://avatars.discourse-cdn.com/v4/letter/m/d78d45/32.png) [@mangeorge](https://boards.straightdope.com/u/mangeorge)\
**Post date:** [July 4, 2002, 2:53am UTC](https://boards.straightdope.com/t/is-the-ceo-an-employee/117155/5 "2002-07-04T02:53:34Z")

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Really, **yojimboguy**? Even if it’s incorporated? Didn’t know that. Kind of a technicality, isn’t it? How the owner works it probably depend’s on tax laws, I assume.

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**Author:** ![Boyo\_Jim](https://avatars.discourse-cdn.com/v4/letter/b/87869e/32.png) [@Boyo\_Jim](https://boards.straightdope.com/u/Boyo_Jim)\
**Post date:** [July 4, 2002, 3:23am UTC](https://boards.straightdope.com/t/is-the-ceo-an-employee/117155/6 "2002-07-04T03:23:12Z")

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[Here’s](http://www.irs.gov/businesses/small/display/0,,i1%3D2%26i2%3D23%26genericId%3D20854,00.html) an IRS web page stating one type of business structure, a partnership, in which the partners are not employees. There are several other structures as well, I believe.

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**Author:** ![mangeorge](https://avatars.discourse-cdn.com/v4/letter/m/d78d45/32.png) [@mangeorge](https://boards.straightdope.com/u/mangeorge)\
**Post date:** [July 4, 2002, 6:21am UTC](https://boards.straightdope.com/t/is-the-ceo-an-employee/117155/7 "2002-07-04T06:21:05Z")

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Thanks, **yojimboguy**. Very informative link. Nice and short.  
So, in general, owners of proprietorships and partnerships are not emolyees but those who draw an income from corporations and the rest are.  
Now I see why these people usually hire lawyers. It’s not simply tax issues, but liabilities too.  
Peace,  
mangeorge