I was talking to someone I know who recently had to close their business. Luckily for me they were never a client of mine, unfortunately for them they were not.
I had inquired whether they had filed for unemployment benefits yet. I was informed that they were never instructed to give themselves a paycheck, so they were not eligible for benefits.
This was the purchase of a franchise that was having difficulties just before the economy went bad. Then once purchased, the economy went bad and the franchise went really south. I am not a fan of franchises, but that is a different issue.
I believe that all business owners should be taking some salary regardless of the entity. Especially if things are not looking good for a business you own, this will allow you to file a claim for unemployment benefits. But to collect you have to be in the system and not just for a payroll.
Now I have had the arguments that if the business in the past, that were having difficulties stating that the payment of payroll taxes is not a possibility at all. I argue the opposite that it maybe the most important time to do so.
I have been told of owners who pay themselves six figure salaries complaining that their businesses are always losing money. So I guess that there are two sides to every issue.