Just got displaced. Understand that as an individual I cannot start a new role during this timeframe, but if I have an LLC, then my single-member company gets paid and not me as an individual. Any thoughts? Any useful, constructive thoughts?
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How would you know? Do you think every person laid off checks this site and posts back factual information? If i post tomorrow that my severance was clawed back, would you believe it? Why?
Just chill for two months, get a gig job part time. That’s what I’ve been doing, just to do something for four hours a day M-F and get out the house. Still getting regular pay and also making extra cash on the side. It’s been good. Then I’ll start actively looking for a full time job.
We are yet to get even one example of someone who had severance clawback. I know the quip about absence of evidence…
I wouldn’t hesitate to work under my LLC in this situation whether precleared or not, LLC setup after or before being laid off UNLESS this business has some randomly large footprint and exposure. Midwestern Accounting Assistance, LLC is unassuming and isn’t bringing in millions. Wells will do cursory searches against your SSN at best, find no reporting employers and move on.
That being said, in this case, the veil is thin and would easily be pierced by the court should it go that far. But even then I wouldn’t be worried if the business was outside finance.
Did you pre clear the outside business activity through the pre-clearance process at wells already? If so, then it’s work you were already approved to do. Example - If you owned a coffee shop before and it was approved through the outside business activities preapproval process, then they can’t stop you now from continuing that work. If not - probably a no-go.
I have multiple LLCs in which I own 50%. I've never had an issue.
Consult an attorney. But if it feels fishy, it probably is.
if you weren't doing it yesterday you can't do it for the next 60 days as you are still considered an employee
Go for it- I’m sure Wells Fargo will be happy to not need to pay you severance.
@a2 Thank you for that useful reply!
Using a Single-Member LLC (SMLLC) to receive income while you cannot personally take a role is a valid legal strategy for separating liability.
HOWEVER ,Even if paid to the LLC, performing work for a new client may breach your current employer's non-compete, intellectual property, or moonlighting clauses.