Unemployment question

[TR Custom Parts]

Got a question for those of us who are employed by a company and also are a sole proprietor of a part time business. If you were suddenly to lose your regular job would you be unable to collect unemployment because you have a part time business?? My regular job is sucking big time right now and just want to know where I stand if that day comes that I am shown the door. Hopefully it will not happen as I DO an excellent job but guys in suits don't always know what it is like down in the trenches.

 

[turbot2496]

Hopefully it will not happen as I DO an excellent job but guys in suits don't always know what it is like down in the trenches.
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Geez.... is this ever true.

 

[10secvega]

I believe you'll have to show it as other income when you file.If you make to much they may deny you unemployment or they give you less.

 

[salvageV6]

Whatever you declare to the state and feds. in CT will apply when you file.

10secVega is correct.

And of course if you get a windfall of keychain orders you'd have to reimburse them if you made too much $$$.

I believe it went by previous years income declaration in CT, but I can't remember, I didn't make much in side jobs to matter at all with the amount.

 

[TR Custom Parts]

Well, my Buick income will no way be enough to pay all the bills on it's own. It is a nice 2nd income for sure so if something does happen you guys will have to order more stuff.

I guess putting the business in the wife's name wouldn't help either since we file jointly?

Hopefully, nothing is going to happen but just looking into what my options would be.

 

[Fuelie600]

Putting the business in your wifes name should be good. Unemployment is based on your earnings.

 

[TexasT]

i'd suggest

Well, my Buick income will no way be enough to pay all the bills on it's own. It is a nice 2nd income for sure so if something does happen you guys will have to order more stuff.

I guess putting the business in the wife's name wouldn't help either since we file jointly?

Hopefully, nothing is going to happen but just looking into what my options would be.

you might look into turning the business into a corporation. then you could just be an employee. Also look into your wife as the share holder. many times a female owner can garner preferential treatment. then you can regulate how much you make in income. Also benefits such as retirement accounts funded by the corp and if you elect to be part of the board of directors you can hold your board meetings at say a national even and it becomes a business expense. These are just hypothetical situations and you need to get the advice of a good CpA or attourney. Check out Rich Dad poor Dad by Robert Kyosaki for additional ideas.

 

[rtviper]

I dont now how much time you invest in the Buick business but you could also list it as a hobby. You can deduct all the expenses of a hobby on your taxes and only have to show a profit, no matter how small, once or twice every five years. Talk to an accountant about this. Then when you are let go you will not be employed legally.

 

[TR Custom Parts]

Oh, it's MUCH more than a hobby at this point! Just not enough to live off of.

 

[Little6pack]

Had a friend get laid off from IT job, but he had a part time job. The part time job paid him more than the unemployment benefit so they told him to quit the PT job to get the benifit or Keep the PT job since he was making more.

It was his call.

In your case I would sell, incorporate the business to your wife so that you can get the CT unemployment benefits.

Seems like your a pretty smart guy & could find something else relatively quick in your line of work