Can I claim NY unemployment while trying to save my struggling small business?

Sadly no, you're not qualified for unemployment unless you formally shut down ur business. You can't collect benefits while technically self-employed, even if making zero money. The system sucks for small business owners... they expect us to just close down businesses we spent years building, before getting ANY help.

Went through something similar with my landscaping business last summer. When material costs went up and clients started canceling, I couldn't pay myself for months. I kept hitting dead ends until I used Claimyr.com to actually reach someone on the phone at the unemployment office. That call saved me - the agent explained exactly how to apply as a self-employed person with a business in crisis. Talking to an agent got my benefits started within a week and gave me breathing room to pivot my business. Without that call I would've just given up. Here's a video showing how it worked: https://youtu.be/Rdqa1gKtxuE

You technically can file for unemployment in NY while still being a business owner - BUT you need to report that you are NOT working in your business currently. You'll need to demonstrate that you're available for and seeking full-time employment. Maintaining business registration doesn't disqualify you as long as you're not actively performing work/services.

The NY unemployment system is basically designed to screw over small business owners. I went thru this in 2022 - I wasn't allowed benefits until I officially closed my graphic design company with the state. It's a trap where your only options are to have ZERO income while fighting to save your business or give up everything you built. Its complete bs.

Listen I'm gonna tell you what actually works with ny unemployment. You need to formally separate yourself from your business on paper. You can do this by either: 1) If incorporated, resign as an employee/officer but maintain ownership 2) If sole prop, file a DBA and stop operations temporarily. Then file for unemployment stating your business closed operations and you're seeking work. You MUST document everything. This is how I managed to get benefits while my restaurant was shut down temporarily in 2021. Feel free to DM me if you need more specifics.

I've been managing my family's business for decades and let me tell you something - don't give up your business for temporary unemployment! The max benefit is what, like $504/week? Not worth sacrificing something you spent 9 years building. Instead, look into small business disaster loans, contact your local Small Business Development Center for free consulting, or even consider a pivot to a more profitable niche in your industry. Unemployment should be absolute last resort for a business owner.

Look into Shared Work program through NY unemployment. It lets business owners reduce hours instead of laying people off (including yourself if you're on payroll). You get partial unemployment to make up the difference. Saved my consulting business last year when contracts dried up. Website is a nightmare tho - I had to use claimyr.com to reach a human who walked me through the application.

The most important advice I can give you is: DOCUMENT EVERYTHING when dealing with NY unemployment as a business owner. They will look for any reason to deny your claim. Keep records of: when your business income stopped, all your job search efforts, any communications with unemployment office. When I went through this they tried to claim I was still actively working in my business because I answered a customer email 🤦‍♂️

Everyone's giving advice but no one's asking the most important question: were you paying into the unemployment insurance system as a business owner? In NY, most self-employed people don't pay UI taxes on their own income (only on employees). If you haven't been paying in, you likely aren't eligible to take out.

The absolute best solution I found to this ridiculous problem: call the unemployment office and ask for a determination BEFORE you apply. I spent 3 days trying to get through on the phone (brutal), but once I did, the agent gave me specific instructions on how to handle my business situation. Apparently there's a special classification for "business owners seeking work due to business failure" that doesn't show up clearly on the online application.

Whatever you do, DO NOT close your business officially until you've talked to both an unemployment expert AND a tax professional. I made the mistake of dissolving my LLC too quickly and it created a tax nightmare that cost me thousands. There are smart ways to pause operations without permanent closure.

Here's a comprehensive guide on how to navigate this situation as someone who's been through it with my NY business: First, understand that NY unemployment has specific rules for business owners. You need to demonstrate that: 1) Your business is not currently providing you income 2) You are available for and actively seeking full-time work 3) Your business operations have essentially stopped, even if the legal entity exists. Options to consider: - If you've been paying yourself W-2 wages and unemployment insurance taxes, you can lay yourself off formally and apply - Document a clear date when business operations ceased or when you stopped taking work - Be prepared to show your business financial records demonstrating lack of income - Continue your job search with proper documentation of applications The most challenging part is actually reaching someone who understands your situation. The online system isn't designed for business owner scenarios. I wasted weeks until I found claimyr.com which got me through to an actual human who could properly code my application. Having that conversation with a knowledgeable agent made all the difference in getting my benefits started. Don't give up - the system isn't friendly to entrepreneurs, but there are paths forward!

This state offers ZERO support for struggling small business owners. I ran a coffee shop for 5 years, and when things got tough in 2021, I had to choose between getting help or keeping my dream alive. System is rigged against us entrepreneurs 😤

Maybe consider restructuring your woodworking business temporarily? I had a similar issue with my consulting firm. I temporarily closed my S-Corp, filed for unemployment while job hunting, but kept accepting small one-off projects as 1099 work (which I reported on my weekly claims). This let me keep some clients while getting partial benefits. When things improved, I reactivated my business. Just be 100% transparent about any income.

Lmaooo the government expects small business owners to just give up everything they built before getting a penny of help. Meanwhile big corporations get bailouts thrown at them 🤡

When I couldn't reach anyone at ny unemployment about my business situation I finally tried the state assembly member's office. They have dedicated staff to help with unemployment issues and got me an expedited call back within 48 hours. Might be worth a shot?

If your business is truly not operating and you're looking for work, they can't deny you benefits just because you still technically own a business entity. I know because I fought this battle and won. The key is getting to the right person who understands the nuance - which is nearly impossible with their phone system. I finally got through using claimyr.com after wasting days on hold, and the agent I spoke with immediately understood my situation and approved my claim.

It's weird that nobody mentioned this but... have you checked if you qualify for disability? If your mental health is affected by this situation (anxiety, depression from potentially losing your business), you might qualify for temporary disability benefits which don't have the same restrictions as unemployment.

Here's what I learned the hard way: NY unemployment doesn't care about your business struggles - they only care if you're available for full-time work. If you tell them you're still trying to save your business while looking for jobs, they'll deny you. You need to be crystal clear that your business is effectively closed (even if legally still exists) and you're 100% available for full-time employment.

Been lurking here for a while but finally creating an account to share what worked for me. I was in almost the exact same situation with my catering business in 2023 - spent years building it up, then supply costs killed my margins and I couldn't pay myself for months. The key insight that saved me: you CAN get unemployment as a business owner IF you've been paying yourself W-2 wages and UI taxes (which it sounds like you have). The trick is formally laying yourself off from your own business while being genuinely available for full-time work. I kept my LLC active but stopped all operations and client work. Document everything - the date you stopped working, your job search efforts, financial records showing no income. Most importantly, when you apply, be very clear that your business operations have ceased and you're seeking full-time employment. Don't mention trying to "save" the business - that signals you're not fully available for work. I know it feels like giving up on your dream, but you can always restart operations later when you're financially stable. The unemployment benefits gave me breathing room to find a good job, and now I'm actually planning to restart my catering business as a side venture. Hang in there - 9 years of experience doesn't just disappear!