# I'd rather not own my own business anymore so that I can .... **URL:** \ **Category:** Factual Questions\ **Created:** [February 19, 2009, 11:58am UTC](https://boards.straightdope.com/t/id-rather-not-own-my-own-business-anymore-so-that-i-can/486533 "2009-02-19T11:58:38Z")\ **Posts on this page:** 10\ **Page:** 1
**Author:** ![What\_the](https://avatars.discourse-cdn.com/v4/letter/w/f4b2a3/32.png) [@What\_the](https://boards.straightdope.com/u/What_the)\ **Post date:** [February 19, 2009, 11:58am UTC](https://boards.straightdope.com/t/id-rather-not-own-my-own-business-anymore-so-that-i-can/486533/1 "2009-02-19T11:58:38Z")
… 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. ---
**Author:** ![coremelt](https://avatars.discourse-cdn.com/v4/letter/c/4491bb/32.png) [@coremelt](https://boards.straightdope.com/u/coremelt)\ **Post date:** [February 19, 2009, 12:23pm UTC](https://boards.straightdope.com/t/id-rather-not-own-my-own-business-anymore-so-that-i-can/486533/2 "2009-02-19T12:23:03Z")
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. ---
**Author:** ![Tim\_T-Bonham.net](https://avatars.discourse-cdn.com/v4/letter/t/46a35a/32.png) [@Tim\_T-Bonham.net](https://boards.straightdope.com/u/Tim_T-Bonham.net)\ **Post date:** [February 19, 2009, 8:42pm UTC](https://boards.straightdope.com/t/id-rather-not-own-my-own-business-anymore-so-that-i-can/486533/3 "2009-02-19T20:42:29Z")
> [@What\_the](#): > > .Could I incorporate and set my buddy up as the owner so that none of the restrictions applied to me? 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. Can you trust your buddy not to do this to you? ---
**Author:** ![hdc\_bst](https://avatars.discourse-cdn.com/v4/letter/h/9f8e36/32.png) [@hdc\_bst](https://boards.straightdope.com/u/hdc_bst)\ **Post date:** [February 19, 2009, 8:45pm UTC](https://boards.straightdope.com/t/id-rather-not-own-my-own-business-anymore-so-that-i-can/486533/4 "2009-02-19T20:45:53Z")
> [@t-bonham@scc.net](#): > > 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. Now that is beautifully poetic. ---
**Author:** ![Gfactor](https://avatars.discourse-cdn.com/v4/letter/g/9de053/32.png) [@Gfactor](https://boards.straightdope.com/u/Gfactor)\ **Post date:** [February 19, 2009, 8:46pm UTC](https://boards.straightdope.com/t/id-rather-not-own-my-own-business-anymore-so-that-i-can/486533/5 "2009-02-19T20:46:46Z")
> [@What\_the](#): > > … participate in benefits that owners can’t … and collect unemployment during the time that I lay myself off. I assume this is a hypothetical situation and you are not planning on doing this in real life. Let me know if I am mistaken in this assumption. **Gfactor** General Questions Moderator ---
**Author:** ![drachillix](https://avatars.discourse-cdn.com/v4/letter/d/48db29/32.png) [@drachillix](https://boards.straightdope.com/u/drachillix)\ **Post date:** [February 19, 2009, 8:55pm UTC](https://boards.straightdope.com/t/id-rather-not-own-my-own-business-anymore-so-that-i-can/486533/6 "2009-02-19T20:55:44Z")
> [@t-bonham@scc.net](#): > > Better make sure he’s a REAL close buddy. Because he will own the business. 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 ---
**Author:** ![dracoi](https://avatars.discourse-cdn.com/v4/letter/d/90db22/32.png) [@dracoi](https://boards.straightdope.com/u/dracoi)\ **Post date:** [February 19, 2009, 9:12pm UTC](https://boards.straightdope.com/t/id-rather-not-own-my-own-business-anymore-so-that-i-can/486533/7 "2009-02-19T21:12:48Z")
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. ---
**Author:** ![Rusalka](https://avatars.discourse-cdn.com/v4/letter/r/ecd19e/32.png) [@Rusalka](https://boards.straightdope.com/u/Rusalka)\ **Post date:** [February 19, 2009, 9:42pm UTC](https://boards.straightdope.com/t/id-rather-not-own-my-own-business-anymore-so-that-i-can/486533/8 "2009-02-19T21:42:51Z")
What does “piercing the corporate veil” mean? ---
**Author:** ![Gfactor](https://avatars.discourse-cdn.com/v4/letter/g/9de053/32.png) [@Gfactor](https://boards.straightdope.com/u/Gfactor)\ **Post date:** [February 19, 2009, 9:48pm UTC](https://boards.straightdope.com/t/id-rather-not-own-my-own-business-anymore-so-that-i-can/486533/9 "2009-02-19T21:48:47Z")
> [@](#): > > The general rule of corporate law is that the corporation is a completely separate, legal entity, and, as such, the corporation, and not its shareholders, is liable for its own contracts, debts and torts. In other words, shareholders, directors, officers and employees of a corporation benefit from the doctrine of limited liability, in which none of them are liable for actions taken on behalf of the corporation. This protection from personal liability has traditionally been one of the attractions of the corporate form of organization to its shareholders, officers and directors. > > The limited liability characteristic of a corporation is often referred to as the “corporate veil.” While the corporate veil normally protects shareholders, officer and directors from liability for corporate debts and obligations, “when these individuals abuse the corporate privilege, courts will disregard the corporate fiction and hold them individually liable.” In many cases, determined plaintiffs, feeling that they have been harmed by the corporation or by employees or agents of the corporation, often seek to recover damages personally from the shareholders, directors and officers of the corporation by asking a court to pierce the corporate veil. [http://taxlaw.sprouselaw.com/Texas%20Law%20on%20Piercing%20Corporate%20Veil.pdf](http://taxlaw.sprouselaw.com/Texas%20Law%20on%20Piercing%20Corporate%20Veil.pdf) ---
**Author:** ![astro](https://avatars.discourse-cdn.com/v4/letter/a/9dc877/32.png) [@astro](https://boards.straightdope.com/u/astro)\ **Post date:** [February 19, 2009, 10:06pm UTC](https://boards.straightdope.com/t/id-rather-not-own-my-own-business-anymore-so-that-i-can/486533/10 "2009-02-19T22:06:50Z")
As President of a sub-chapter S Corp you most certainly can legally apply for unemploment from your corporation in certain states. Maryland is one.