I would include your titles. assuming that you have a means of verifying them. Airlines like folks who have demonstrated some leadership and responsibility. Actually many of the folks in your airline ground school will have been 141/135 check airmen or chief pilots. Actually an interviewer might wonder about someone who did 2-4 years as a CFI and never picked up any leadership responsibility...there might have been a reason for that (too lazy or irresponsible).

For self-employed, I would tell them that (since you won't have W-2's). But you will need to provide references who can vouch for your self-employment, and the best person would be the "boss". Airlines understand that many flight school use contractor status simply as an way to avoid taxes.