Are LLC earnings permitted while receiving severance pay?
My partner and I have a NY state LLC for a side business. I also have a full-time job.
If I were to be let go from my full-time employer, would earning money through our LLC prevent me from receiving severance payment?
As I understand it, I wouldn’t be permitted to receive severance payments and salary from a new full-time job. But I’m unclear about how it’s would affect my LLC earnings.
Any info/advice/resources would be greatly appreciated!
Posted Apr 7, 2022, 1:08 PM UTC
24
are you talking about severance payments or unemployment?
Severance is provided by the ex employer, usually in exchange for an NDA / noncompete / some other deal. Having an LLC would not affect that.
you have to report the llc income to the unemployment office and it will reduce the amount of unemployment you receive.
Thanks, and yes I am referring to severance payments paid by my previous employer - not unemployment.
Shouldn't be a problem. They are completely separate. Unless there is a term that dissalows the severance if you have other income, the severance is between you and your previous employer and has nothing to do with your side business.
Was hoping so, thanks!
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