… participate in benefits that owners can’t … and collect unemployment during the time that I lay myself off.
Could I incorporate and set my buddy up as the owner so that none of the restrictions applied to me?
I’m familiar with “piercing the corporate veil” but that typically applies when a business does not legitamately do the things a corporation needs to do in order to exist as a separate entity. I’d make sure my buddy did them.
I also know there are a few risks for my friend if I were to leave him high and dry with unpaid payroll taxes, etc. Let’s not focus on those.
I have no idea how the US unemployment benefits work but in Australia you could wind a business down, pay off any debts owing and then go on to “jobseekers allowance” (our unemployment benefits).
our allowances are means tested so if you have significant savings they won’t pay you anything until you’ve already spent those.
I’d even guess you could still be a company director and claim unemployment here as long as the business paid you less than the threshold for claiming unemployment benefits and as long as the business had total assets less than the means test.
Better make sure he’s a REAL close buddy. Because he will own the business.
An ex-relative, to conceal assets from child support collections, put his expensive boat in the name of the 17-year-old son of his new girlfriend. When the son turned 18, he sold the boat & put the money into his college savings account. And it was legal – there was nothing the former owner of the boat could do.
A woman I have been seeing and her mom just went through this with a house. Mom tried to dodge losing a house to the ex and transferred it to her daughter.
The daughter then refused to give it back and made mom buy it for $80K
Unemployment is different from state to state. In WA, officers of corporations can’t collect unemployment, but you might be able to pull it off in another state without giving up ownership entirely. States also vary on how long you have to be an employee before you can collect unemployment. In many states (such as WA), former employers get stuck with part of the bill for unemployment claims and see their UI rates go up.
But overall, I’d say that you need some good tax planning advice. There are MANY ways to implement benefits and reduce taxes if you pick the right business entity. Dot your I’s and cross you T’s in regards to deductions and you can save thousands.