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Diego Rojas

Real estate agent with inactive LLC - can I qualify for EDD benefits while still looking for clients?

I've been a real estate agent for about 3 years operating through my own LLC, but the market has completely dried up in my area. Haven't closed a deal in nearly 4 months now and my savings are almost gone. My LLC hasn't generated any income this quarter, just expenses. I'm still actively marketing and trying to find clients, but realistically I need some income ASAP. Can I apply for unemployment benefits through EDD while I'm still technically 'in business' but not making money? And if I qualify, do I need to look for work outside of real estate to meet the work search requirements? I'd prefer to stay in my field if possible, but I'm getting desperate. Anyone been through something similar?

This is a tricky situation. As a real estate agent with an LLC, you're technically self-employed, which traditionally wouldn't qualify for regular UI benefits. However, there are some important factors to consider: 1. If your LLC is set up where you paid yourself W-2 wages (rather than just owner draws), you might qualify for regular UI based on those wages. 2. If you previously had W-2 employment before becoming a real estate agent, and that employment falls within your base period, you might qualify based on those wages. 3. If you apply, EDD will likely require you to be available for and actively seeking work outside your business. Simply looking for clients probably won't satisfy the work search requirements. I'd suggest applying anyway - the worst they can say is no. Be prepared to show that your business has essentially ceased operations (even if temporarily) and that you're available for traditional employment.

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Diego Rojas

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Thanks for the detailed response. I did pay myself W-2 wages through the LLC last year, but not consistently. I'm worried about the work search requirements - I've invested so much in my real estate career that starting over in something else feels like giving up. But I guess I don't have much choice at this point.

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i was in almost the exact same boat in 2019!! real estate agent with my own little corp. when things dried up i applied for edd and got approved BUT i had to confirm i was looking for other work. couldn't just say i was looking for real estate clients. had to apply for actual jobs every week.

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Diego Rojas

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That's really helpful to know! Do you remember how many job applications you had to submit each week? And did you end up finding another job or did the real estate market pick back up for you?

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had to apply to 3 jobs a week and document them for the certification. the market picked back up for me after about 5 months. went back to real estate full time but im glad i had the edd benefits to bridge the gap!

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Zara Ahmed

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I'm a former EDD claims specialist. Here's what you need to know: 1. Self-employed individuals with an LLC can qualify for UI benefits IF they paid into the UI system through payroll taxes on W-2 wages. 2. You must be totally or partially unemployed. In your case, since your business is still technically active but not generating income, EDD will need to determine if you meet their definition of unemployed. 3. You absolutely must be available for and seeking full-time work to qualify. This means being willing to accept suitable employment outside of your real estate business. 4. When certifying, you'll need to list at least 3 job search activities per week. 5. If you get any real estate commissions while on UI, you must report that income during certification, which will reduce your weekly benefit amount accordingly. I recommend applying online through UI Online. Be honest about your situation. EDD will likely schedule a phone interview to determine your eligibility based on your specific circumstances.

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Diego Rojas

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Thank you so much for this detailed information! When you say 'job search activities' - does that only mean applying for jobs or can networking, attending job fairs, etc. count too? I'm just trying to understand what I'd need to document.

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Zara Ahmed

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Job search activities can include: - Applying for jobs (online or in person) - Submitting resumes - Attending job interviews - Registering with employment agencies - Attending job fairs - Networking events specifically for job searching - Participating in job training or workshops Keep detailed records of all activities including dates, company names, position titles, contact information, and outcomes. EDD may audit your job search efforts at any time, so documentation is crucial.

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StarStrider

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DONT WASTE UR TIME WITH EDD!! I tried for months to get benefits when my construction business slowed down. Couldnt get anyone on the phone 2 explain my situation. They just denied me automatically cause I was 'self employed' even tho I paid myself wages. The system is BROKEN!!!!

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Luca Esposito

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Actually, I had a similar situation but managed to get through to an EDD rep who helped fix my claim. Have you tried Claimyr? It's this service that helps you get through to EDD without waiting for hours. I was skeptical but it worked for me. They connected me with an EDD agent who actually helped resolve my self-employment issue. There's a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km. Check out their website at claimyr.com if you're still having issues reaching someone.

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Nia Thompson

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im in real estate too but i work for a broker not my own llc. market is absolutely dead right now! have you considered taking a part time job while still keeping your license active? thats what im doing. working at target while still trying to sell homes on the side. that way youre making some money but dont have to give up on real estate completely

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Diego Rojas

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That's actually a really good suggestion. I hadn't considered that middle-ground option. How are you balancing both? Are you upfront with your employer about still doing real estate?

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Nia Thompson

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yep i told target i still do real estate. they were fine with it as long as i commit to my scheduled hours. i work 25-30 hrs a week there and do real estate stuff on my days off or after work. its exhausting but bills are paid. and i figure the market will turn around eventually

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One important thing to mention - when you apply for unemployment, make sure you're clear about your business status. I know someone who got in trouble because they didn't properly explain they were still technically trying to run their business while collecting benefits. EDD considers that misrepresentation and can require repayment plus penalties. Be totally upfront that you're still marketing for clients but have no actual income coming in. They'll make a determination based on your specific situation.

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Diego Rojas

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That's a really good point - I definitely don't want to end up with an overpayment situation. I'll make sure to be completely transparent about still having the business but not having any actual income from it.

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why would u even qaulify for benefits if u choose to be in real estate? like thats the risk u take rite? when i worked retail and got laid off i got benefits but thats different then choosing a commission job that doesnt garantee income?

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It's not about the type of work you do, but about whether you paid into the unemployment insurance system. If OP paid themselves W-2 wages and their employer (the LLC) paid unemployment insurance taxes on those wages, then they've contributed to the system just like any other employer would for their employees. The system is designed to help during periods of unemployment regardless of your industry.

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Zara Ahmed

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Just an update on a recent policy change - the California EDD has actually been instructed to more carefully evaluate self-employment situations since 2023. They now look more closely at whether your business is "completely idle" versus "just not getting clients." In your case, since you're still actively marketing, they might consider you "still working but with reduced income" rather than unemployed. But again, each case is unique and they'll evaluate your specific circumstances. When you get to the phone interview (and you likely will), be prepared to discuss: 1. Your regular work hours before the slowdown 2. Your current activities related to the business 3. Whether you've taken definitive steps to close or suspend the business 4. Your willingness to accept full-time work elsewhere Document everything - your marketing efforts, lack of client inquiries, financial statements showing the business has no income, etc. This documentation will be crucial if there's any question about your eligibility.

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Diego Rojas

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This is incredibly helpful information. I think I need to make a decision about whether I'm going to formally suspend my business operations or keep trying to find clients while looking for other work. Sounds like trying to do both might make the EDD claim more complicated.

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I'm not an expert but I've been following similar situations in my area. One thing that might help is looking into the Pandemic Unemployment Assistance (PUA) program if it's still available, or any state programs specifically for self-employed individuals. Also, have you considered reaching out to your local Small Business Development Center? They sometimes have resources or emergency funding programs for small businesses going through tough times. Another thought - since you mentioned you're still actively marketing, you might want to document exactly what that entails and how many hours per week you're spending on it. If it's just a few hours of posting on social media vs. 40 hours a week of active prospecting, that could make a difference in how EDD views your situation. The more you can show that your business activity has significantly decreased from normal operations, the better your case might be. Good luck with whatever you decide!

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Admin_Masters

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Great suggestions! I hadn't thought about the Small Business Development Center - that's definitely worth looking into. You make a good point about documenting my current business activities. Right now I'm probably spending maybe 5-10 hours a week on marketing (social media, checking MLS, following up on old leads) compared to the 50+ hours I was putting in when business was good. I should definitely track this more carefully to show the dramatic decrease in activity. The emergency funding programs angle is interesting too - even if it's just a small bridge loan, it might buy me some time to figure out my next move. Thanks for the practical advice!

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