[epaddack]

I was the only worker for this company. I did 100 % of the work. And I was 100%of that companys income. I had a good year and I made my employer good money. She sent me a 1099 slip and dissolved the company. How can she turn me into contracter when I was the company. Its been 8 months and I want back unemployment checks she should have paid me. I have not worked one day since she cheated her way out of this, Now I'm loseing my house and other things. Who do I call I want to do it today.

[ScottGem]

Some things don't make sense here. What was your compensation arrangement? Did you work on commission? Did you get a paycheck on a periodic basis? If so, was taxes withheld from that check?

I also don't understand exactly how she cheated you. Did you not pay you the compensation agreed upon? Is it that you can't get unemployment? You really need to supply more info here.

If the problem is not getting unemployment, and you were getting regular paychecks with withholding, then you go to the unemployment office with those checks and appeal the denial of benefits.

Other than that, without knowing more about why you think you were cheated its hard to advise further.

[epaddack]

Thanks for your interest in my prob. Ok This invester was a friend. She came to me wanting to invest some of her money in my buying and selling off shore produce. I told her if she could put in $40,000 I would return her 100%on her money. Then there would be enough carry over money in the bank for me to keep my company going. This would be my first company. I named the company, took care of adverticement,buying,selling,payables and recieveables.
I figured out with my customers that buy from me on a contract deal through the year that I could take 75% and she could get 25%. At the end of the year with her takeing 25% of the profit should be about $40,000. She can take out her $40,000 she put in to make $80,000. That still leaves money in the bank because I have 2 customers that pay in 10-14 days and I was on 30 day terms with my vendors. There was always about 40-50 thousand in the float for carry over. She agreed to do this. We wanted to make this an S corp so it would pertect her.She wanted to be the person that would reicieve papers for the corp until we could have a meeting to decide officers. I started selling and got a couple of contract deals for 6 months worth of business. That's when she turned on me and said she will pay me the 75% profit but she was going to keep 70% of the shares. I told her I would not signmy name on anything if I did not have 51% or more. I was in for 6 months no matter what because I had obligations with the contract deals with my customers. She told me if I want to have the company at the end of the year she would sell it to me for a price. This is a friend that found a nice ride. I tried to get her to pay me a once every two weeks $3,000 and keep the rest in the bank and give out divedend checks every quarter. Would help on the taxes a little. She just wanted to give me the 75% profit twice a month. At 8 months I had her $40,000 made for her and I wanted to run on my own now. She said no she is not selling and told me I can no longer work for this company and she is going to disolve the company if she couldent keep me for her future retirement money..! She sent me a 1099"two months after they were due.

Sorry that's a lot of talking. I have all the e-mail and corp backup were she said that I was part owner. So I can't be a contractor for my own company??

I want her to pay for this. She took my compny away and it has hurt me and my 10 years of building customers. I want to see if she can get fined for 1099 me when I told her on paper a few times abut salary. She should have taken out emploment taxes and paid into it. She fired me and treated me as an employ of hers.

Thanks if you make it through the whole thing I would like your input if you don't mind Thanks for listening

[ScottGem]

Ok, you really need to see an attorney on this. You have a real complex situation and frankly, I'm a bit out of my depth here.

Its not clear whether the S Corp was ever finalized or not. Nor is it clear if you signed anything or there were any agreements. Its also not clear how much was earned and how much you received.

However, which version of the 1099 did you get. If you got a 1099-DIV, that might be correct as she was reporting the income as dividends on the shares.

From what I can see you need at, the very least, get a full accounting of all revenue and expenditures. You should also contact your vendors and customers to get their records of how much they paid or were paid.

I think your problems are way beyond the 1099 issue. The only thing that is clear is that you were not an employee. At the least you were a partner sharing in the profits. But you were not an employee so sending a 1099 is more likely correct.

Again, I urge you to get an attorney (you should have gotten one from the beginning to advise you) to try an untangle this mess.

[epaddack]

Scott-
The S Corp was complete. She took it and made her name read owner of 100% shares. The good part is on my government licence and the broker licence I got she put me as 30% owner"shareholder" She put herself down as P,VP,sec,tre.

The way I see it The corporation papers were aproved with her 100% oner and we never split shares -officer positions. So wouldn't that make me an Employ? And if so I think I should do like you say and get a lawyer and hope that the person with integrity comes out ahead.

Thanks Ellis

[ScottGem]

No. An employee is paid a regular salary with witholding. Like I said, about the only thing I'm clear on is that you weren't an employee. And frankly, I think you are wrong in taking that approach. I think you are better off claiming you were a partner entitled to a share of the profits. While that wouldn't get you unemployment benefits, since you weren't an employee that doesn't matter.

You want your fair share of the profits earned while the company was in business. Whether that be 30% or 75% or whatever.

Again, this is a tangled situation and I can only go by what you have told us. I very much think you need an attorney to get this untangled.

[epaddack]

OK thanks for your help Scott I will do that. If anything I hope this tought me to pay attinion to the Damn details of paper work. She had the one piece of paper that makes her the big cheese.

Thanks Ellis

[ScottGem]

Good luck, Let is know what happens.