How do you pay yourself?

Discussion in 'Starting a Lawn Care Business' started by Coolclay84, Mar 3, 2014.

  1. shane-pa

    shane-pa LawnSite Senior Member
    Posts: 337

    Do you try to claim unemployment on yourself?

    I googled this and came up with mixed answers. some say yes if you are registered as a corp. or llc taxed as a corp. you are an employee of the business entity. at the same time you own the business and cannot collect as some sites say. before you try to collect, call the state office to find out. this isn't one of those ask for forgiveness later type of thing.
     
    Last edited: Mar 4, 2014
  2. joker17

    joker17 LawnSite Member
    Posts: 15

    I worked for the Dept. of Labor in Missouri. I can tell you that in MISSOURI that as long as you pay the necessary unemployment taxes you are allowed to receive benefits. I haven't worked there in 2 years, but I doubt the law has been amended. Still, I would follow up to make sure before the auditors come knocking.

    P.S. If you call your state representative they will contact the appropriate state agency and get a definite answer for you or point you to the right person to give you a definite answer.
     
  3. ColliCut Land Mgmt

    ColliCut Land Mgmt LawnSite Member
    Posts: 139

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  4. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Posts: 7,563

    Yes, technically, I COULD collect unemployment.

    I am an employee of an entity, in the same way a corporate officer is an employee of an entity…that is one of the main purposes of a business entity, it establishes your business as something separate than yourself.

    I take draws throughout the winter, so it would cancel out the unemployment if I claimed it.

    But if something were to happen, I went out of business, there was no money…something, yes, I could collect unemployment, because I pay into UI just like everyone else.

    I have always been listed as "General Manager" of businesses I run.
    Not "owner"

    Owner isn't really a job description.

    But really all I do during the winter months, is stop paying myself regularly…mostly because the income isn't as steady, I get $$ from snow plowing or consulting, which , as most people know results in inconsistent income.

    It's enough, just not on a standard month to month basis.

    But,as I said, if it were to not snow in alaska (like that would every happen) or not get any consulting requests, or other odd type jobs.
    My monthly snow plowing contracts (ones that pay monthly weather it snows or not) wouldn't be enough to keep my bills paid (personally) during the winter.

    They do cover operations, keeping the lights on, minor retainers for operators ( I pay key people small salaries to be on call) and equipment rentals…but if nothing happens, there isn't a whole lot of love to spread around.

    Things have been very dry this year as it is up here…. and things…..are…. tight!
     
  5. Kleen Kutz

    Kleen Kutz LawnSite Bronze Member
    from Ama,La
    Posts: 1,604

    Hummm??
    Posted via Mobile Device
     

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