Can you collect unemployment if you have an LLC - NYS Department of Labor eligibility question

Having an LLC doesn't automatically disqualify you from unemployment benefits. The key factor is whether you're actively operating the business and earning significant income from it. Since your LLC activity is minimal and sporadic, you should still qualify for UI benefits based on your W-2 employment. When you file your weekly claims, you'll need to report any income from the LLC work, but small amounts won't necessarily affect your benefits. Make sure to be completely honest about the LLC when filing your initial claim.

i had an llc when i filed for unemployment last year and it wasnt a problem. as long as your not making much money from it they dont care. just report whatever you make on your weekly claims

The important distinction is between being an employee who happens to have a side business versus being primarily self-employed. Since you were laid off from a W-2 job, that's your base period earnings that determine your benefit amount. The LLC income gets reported weekly but won't disqualify you unless you're earning substantial amounts. If you do get a consulting project through the LLC while collecting, report it honestly - they'll typically reduce your weekly benefit by the amount you earned that week.

Ugh the NYS Department of Labor makes everything so complicated! I've been trying to get through to someone at their office for weeks about a similar question and can never reach anyone. The phone lines are always busy and when I do get through they just hang up on me.

Just be careful about how you structure your LLC activities while on unemployment. If NYS Department of Labor thinks you're actively seeking work for your business instead of looking for a job, that could create problems. Keep good records of your job search activities and make sure you're meeting the work search requirements.

I went through this exact situation about 6 months ago. Had an LLC for some side graphic design work but was primarily employed full-time. When I got laid off, I was honest about the LLC on my application and had no issues getting approved. The caseworker explained that since my LLC earnings were sporadic and minimal compared to my regular salary, it didn't affect my eligibility. Just make sure you keep detailed records of any LLC income and report it accurately on your weekly certifications. The NYS DOL website actually has a section about business ownership and unemployment that might be helpful to review before you apply.