I have a friend who sort of work off the books. He doesn’t get normal pay stubs, his boss uses his own personal checks to pay his employees. Over a warm cup of coffee last night, me and my friend came up with the question, what would happen if his boss dies while he is still employed with that firm? Who would pay him? Would he get paid at all?
Is he officially employed as in punches a clock, W2 or is he completely off the books?
If the latter, I’d say sucks to be him but that’s the risk of that sort of arrangement.
He received his taxes, so I guess he is not completely off the books.
If he’s legally entitled to some pay and there’s no other signatory in the firm (no one who can legally sign checks) then it’ll be a while. A court would likely appoint someone to close out the affairs of the firm and that person would be empowered to write checks and perform the liquidation and so forth.
I’m the only signatory for my firm. But my attorney can do so in event of my incapacitation. It’s in our corporate operating agreement.