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WALLSTREETFIGHTER
WALLSTREETFIGHTER, Attorney
Category: Legal
Satisfied Customers: 16407
Experience:  14 years experience in representing clients, current member of legalshield, legal club of america, NYSUT and UFT attorney
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hello . im in the process of starting a small electrical contracting

Customer Question

hello . i'm in the process of starting a small electrical contracting business in new jersey. im also a union electrician , but lately , that is more of a part time job than anything . at some point i will go full steam ahead on my own thing , but for now i want to start slow . i'm toying with the idea of putting the business in my wifes name . the reasons for this are twofold . tax breaks for first time minority business owners and secondly , in the event i have no work from her business nor the union , i can still collect new jersey unemployment here and there . its a safety net , but im not sure its 100% legal ? this would only be on occasion and hopefully i'm busy enough that i never have to do this ! i know guys who are in a similar situation as me but had small businesses in their own names . they hads to pull teeth to prove to unemployment that they had no work of their own . it was a big hassle i'm trting to avoid . what are your thoughts ?
Submitted: 1 year ago.
Category: Legal
Expert:  WALLSTREETFIGHTER replied 1 year ago.

WALLSTREETLAW :

Hello I am a licensed attorney. I am here to help answer your questions. Please do not hesitate to ask for clarification

WALLSTREETLAW :

This would be possible to accomplish, however you have to make sure you do this the correct way,

WALLSTREETLAW :

I would consider filing a corporation such as an LLC where your spouse is the owner and you are an employee not a shareholder,

WALLSTREETLAW :

as an employee the LLC would pay you a w2 salary, and all payrol taxes,

WALLSTREETLAW :

such as unemployment taxes, and others,

Customer:

yes , that was the plan . it will be an LLC

WALLSTREETLAW :

this way if you ever apply for unemployment,

WALLSTREETLAW :

you may have an easier way to get approved,

WALLSTREETLAW :

Be aware you should be paid a w2,

Customer:

ok , so from a legal standpoint , you see nothing wrong with this ?

WALLSTREETLAW :

so unemployment taxes are paid, and you can qualify,

WALLSTREETLAW :

This is a common issue,

Customer:

i understand

WALLSTREETLAW :

and this type of structure is common,

WALLSTREETLAW :

Since you are not a shareholder, you can honestly claim you have no ownership rights,

Customer:

does it matter that she is employed and has her own full time joib , since this is a completelt seperate entity ?

WALLSTREETLAW :

no,

WALLSTREETLAW :

be aware the risk you do have is she is the owner of the LLC,

WALLSTREETLAW :

and can write checks, and make deposits,

WALLSTREETLAW :

only she will be able to obtain tax refunds as well,

WALLSTREETLAW :

If their is a divorce it can be an issue as well

Customer:

ive checked with the state's board of electrical examiners and they said its done all the time . as long as i ( the license holder ) is doing the work , the business can be in anyones name .

WALLSTREETLAW :

right,

Customer:

i do realize that can be a risk , but we're pretty good in our marriage and i really doubt anything like that would ever come into play .

Customer:

once i get established , the possibility of changing everything to my name is XXXXX XXXXX . this is really just a stepping sto

Customer:

stone , and a safety net for now

Customer:

thanks for your speedy response !

Customer:

are you still there ?

WALLSTREETLAW :

Good luck, and if you have any further questions

WALLSTREETLAW :

please do not hesitate to ask

Customer:

thanks again , i appreciate it !

WALLSTREETLAW :

A good accountant should help you to with the tax issues,

WALLSTREETLAW :

If satisfied with our service please provide us with positive feedback, thank you

Customer:

yeah , thats my next stop . i definitelt will ! thanks again !

WALLSTREETFIGHTER, Attorney
Category: Legal
Satisfied Customers: 16407
Experience: 14 years experience in representing clients, current member of legalshield, legal club of america, NYSUT and UFT attorney
WALLSTREETFIGHTER and 6 other Legal Specialists are ready to help you
Expert:  WALLSTREETFIGHTER replied 1 year ago.
If you have any further questions please do not hesitate to ask.

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WALLSTREETFIGHTER
WALLSTREETFIGHTER
Attorney
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14 years experience in representing clients, current member of legalshield, legal club of america, NYSUT and UFT attorney