Can you collect unemployment if you own your own business - NYS Department of Labor eligibility questions
I've been running a small consulting business for the past two years but work has completely dried up. I haven't had any clients in over a month and my savings are running out. I know I pay into unemployment insurance as a self-employed person, but I'm not sure if I can actually file a claim with NYS Department of Labor since I technically still own the business even though it's not generating any income. Has anyone been in this situation? Do I need to officially close the business first or can I file for UI benefits while keeping it open but dormant?
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Amina Sy
Yes, you can potentially collect unemployment as a business owner in NY, but there are specific requirements. You need to show that you're unemployed through no fault of your own and that your business income has essentially stopped. The key is proving you're available for work and actively seeking employment. You'll need to report any business activities during your weekly claims even if they don't generate income.
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QuantumQuest
•That's helpful, thank you! Do you know if I need to provide documentation showing the business income stopped? I haven't had any revenue since December but the business is still legally active.
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Oliver Fischer
i think you have to close the business completely but im not 100% sure. my friend tried this last year and they made her shut everything down first
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Natasha Petrova
Actually, you don't necessarily need to close the business. The NYS Department of Labor looks at whether you're actually working and earning income, not just business ownership status. However, you'll need to be completely honest about any business activities on your weekly claims. Even unpaid work like marketing or business development could affect your eligibility. I'd recommend calling NYS Department of Labor directly to discuss your specific situation since self-employment cases can be complex.
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Javier Morales
•Good luck trying to reach anyone at NYS Department of Labor by phone! I've been trying for weeks to get through about my claim issues. The hold times are insane and half the time they just hang up on you.
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Emma Davis
•I had the same problem with getting through to NYS Department of Labor until someone told me about Claimyr. It's a service that helps you get connected to actual agents - they have this system that navigates the phone menus for you. Check out claimyr.com and they even have a demo video at https://youtu.be/qyftW-mnTNI showing how it works. Saved me hours of frustration trying to reach someone about my adjudication issues.
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GalaxyGlider
The whole system is ridiculous. They make it so complicated for business owners when we're the ones who've been paying into unemployment insurance. I had to jump through hoops just to prove my business wasn't making money when it was obvious from my tax returns.
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Malik Robinson
Wait, I'm confused about this too. If you own a business but aren't making money, how do they determine your benefit amount? Is it based on previous W-2 earnings or the business income you reported?
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Amina Sy
•For self-employed individuals, NYS Department of Labor typically looks at your reported business income over the base period, which is usually the first four of the last five completed calendar quarters before you file. If you had W-2 income during that period too, they'll consider both.
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Isabella Martin
I went through this exact situation last year with my freelance graphic design business. You can file for unemployment while keeping your business open, but you need to be very careful about reporting everything accurately. The key thing is that you have to be "totally unemployed" - meaning you're not doing any work for the business, even unpaid tasks like updating your website or reaching out to potential clients. I had to essentially put my business in complete hibernation mode. Document everything - keep records of when your income stopped, any final client payments, etc. Also be prepared for them to ask detailed questions about your business activities during the adjudication process. It took about 6 weeks for my claim to be approved, but I did eventually get benefits based on my previous year's business income.
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