### Question
How does the law define employee-owner?


### Answer
Under *26 U.S.C. § 269A*, **employee-owner** is defined as:

> any employee who owns, on any day during the taxable year, more than 10 percent of the outstanding stock of the personal service corporation

#### Citation:
  - *26 U.S.C. § 269A*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IX-ITEMS NOT DEDUCTIBLE**

