Can I collect unemployment if I own an LLC - NYS Department of Labor eligibility question
I've been working as a freelance graphic designer for the past two years and set up an LLC for tax purposes. Business has completely dried up since January and I'm barely making any income. Can I still file for unemployment benefits with NYS Department of Labor even though I technically own this business? The LLC only has me as the sole member and I haven't paid myself a regular salary. I'm really confused about whether this disqualifies me from UI benefits.
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Clarissa Flair
This is actually a complex situation with NYS Department of Labor. Generally, if you're the sole owner of an LLC and haven't been paying unemployment taxes on wages to yourself, you might not be eligible for regular UI benefits. However, there are some exceptions depending on how your business was structured and if you had any W-2 wages from other employment. You'll need to report the LLC when you file your claim.
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Eve Freeman
AuthorI did have a part-time W-2 job last year that I lost in December. Would that help my case? And what do you mean by reporting the LLC - do I need to list it as employment?
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Caden Turner
dude same situation here, i have a small business but its basically dead now. when i tried to file they asked a million questions about the business and whether im still operating it. super confusing
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McKenzie Shade
The key question NYS Department of Labor will ask is whether you're still actively operating the business. If you've essentially ceased operations due to lack of work, that's different than just having slow business. You need to be very clear about your current status when filing.
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Harmony Love
I was in a similar situation last year and couldn't get through to anyone at NYS Department of Labor to get a clear answer. Spent weeks calling and getting hung up on. Finally used this service called Claimyr (claimyr.com) that helped me get connected to an actual agent who could review my specific situation. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Ended up being eligible because I had W-2 wages in my base period.
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Rudy Cenizo
How much did that cost? I'm desperate to talk to someone but don't want to get scammed.
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Harmony Love
It's worth checking out their site for details. For me it was way better than wasting more weeks trying to get through on my own. The agent was able to look at my work history and LLC situation and give me a definitive answer.
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Natalie Khan
The whole system is ridiculous!! I know people who collect unemployment while working under the table but someone trying to run a legitimate business gets penalized. NYS Department of Labor makes everything so complicated when people are just trying to survive.
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Clarissa Flair
I understand the frustration, but the rules exist to prevent fraud. The distinction between being unemployed vs. being self-employed with low income is important for the integrity of the system. That said, the application process could definitely be clearer about these situations.
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Daryl Bright
You definitely need to be honest about the LLC when you file. If they find out later that you didn't disclose it, you could face overpayment issues or even fraud charges. Better to be upfront and let them determine eligibility than try to hide it.
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Mason Lopez
I went through this exact situation last year with my photography LLC. Since you mentioned having W-2 wages from your part-time job, that's actually really important - those wages likely make you eligible for benefits even with the LLC. The key is being completely transparent about your business status when you file. I had to provide documentation showing my LLC had essentially no income and wasn't actively operating. NYS Department of Labor will want to know if you're available for work and actively seeking employment, which can be tricky if you're still technically operating the business. I'd recommend gathering all your financial records for both the LLC and your W-2 job before filing, and be prepared to explain that while you own the LLC, you're not currently generating income from it and are seeking traditional employment.
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