I own an SCorp. I lost my only contract vehicle which brought money into company. I received my last payment last week. However, I still need to provide myself with benefits (health, disability, etc) which are paid out of the company’s bank account. Since I no longer have any money coming in, I would like to get Virginia Unemployment to help pay some bills. I am thinking of two scenarios on how to deal with this. 1. Empty the Scorp bank account with a shareholder distribution. Pay my benefits with personal deposits. I think it would become COBRA, correct? Also, keep enough money in the business account to pay business expenses such as bank fees. 2. Keep all money in the business account with no shareholder distribution (about $10K). Pay my benefits (health, etc) with that money. Get unemployment. I think it is not COBRA in this case? I need to know what is the smartest, legal way to do get unemployment but also be an officer in an Scorp.
Yes, I paid VEC based on my salary as an employee for the past 9 1/2 yeas.
I have not taken any unemployment at this time; that is , I haven't received any weekly payments.
I did "apply" for unemployment and received an assessment. But, because I was still receiving final payments into the company, I decided not to apply and get payments on a weekly basis. In fact, I think it is expired (after 28 days) and if I want unemployment, will have to reapply.
I truly aim to please you as a customer, but please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. Please consider that I am answering the question or question that is posed in your posting based upon my reading of your post and sometimes misunderstandings can occur. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered.
Kindly remember the ONLY WAY experts receive any credit at all for spending time with customers is if you click on OK, GOOD or EXCELLENT SERVICE even though you have made a deposit or are a subscription customer. YOU MUST COMPLETE THE RATING FOR THE EXPERT TO RECEIVE ANY CREDIT, if not the site keeps your money on deposit.
Also remember, sometimes the law does not support what we want it to support, but that is not the fault of the person answering the question, so please be courteous.
Okay, so I'm eligible. But, how do I handle paying the benefits? I came up with 2 scenarios.
1. Empty the Scorp bank account with a shareholder distribution. Pay my benefits with personal deposits. I think it would become COBRA, correct? Also, keep enough money in the business account to pay business expenses such as bank fees.
2. Keep all money in the business account with no shareholder distribution (about $10K). Pay my benefits (health, etc) with that money. Get unemployment. I think it is not COBRA in this case?
I find this so confusing..thanks for your patience.
So, it sounds like I should empty the business account where the benefits are being paid with a shareholder distribution. Then payback into he business account with personal funds so that the benefits are paid each month.
Does this sound reasonable?
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).