Can you own a business and collect unemployment benefits from NYS Department of Labor?

Yes, you can own a business and collect unemployment in New York, but there are specific rules. The key is that your business income can't exceed your weekly benefit rate, and you need to report all earnings on your weekly claims. Since you're making so little from the LLC, you should be fine as long as you're reporting everything accurately. The NYS Department of Labor will look at whether the business prevents you from being available for full-time work.

ugh this is so confusing!! i have a side business too and when i filed they asked all these questions about it that i didnt really understand. like what does "substantially engaged" even mean? i just sell stuff on etsy occasionally

I went through this exact situation last year. The trick is being completely transparent with NYS Department of Labor about your business activities. I had to provide documentation showing my business income was minimal and that I was still actively seeking employment. They approved my claim but I had to submit additional paperwork. Just make sure you're marking yourself as available for work and actively job searching.

This whole system is ridiculous. I know someone who got denied because they had a small consulting business that made like $50 a month. Meanwhile people are gaming the system in other ways and getting approved. The NYS Department of Labor seems to make arbitrary decisions sometimes.

If you're having trouble getting through to NYS Department of Labor to clarify this, I found this service called Claimyr that helped me reach an actual agent. They have a website at claimyr.com and there's a video demo at https://youtu.be/qyftW-mnTNI showing how it works. I was stuck in adjudication for weeks because of questions about my freelance work, and they helped me get connected to someone who could explain exactly what documentation I needed.

same boat here, i have a photography business that brings in maybe $500 on a good month but most months nothing. been collecting UI for 2 months now with no problems as long as i report everything

I'm in a similar situation with a small online business that I started during the pandemic. From what I've learned, the main thing NYS Department of Labor cares about is whether you're "available and able to work" full-time. Since your LLC income is so minimal, you should be fine as long as you're actively job searching and reporting all income accurately. I'd recommend keeping detailed records of your business activities and income just in case they ask for documentation later. The fact that you mentioned it upfront when filing shows you're being honest, which is important. Don't stress too much - sounds like you're doing everything right!

I went through something very similar when I lost my job earlier this year. I have a small consulting business that I've been running on the side for about 3 years, and like yours, it brings in very inconsistent income - sometimes $400-500 in a month, other months absolutely nothing. When I filed my initial claim, I was completely honest about the business and provided all the details they asked for. The caseworker I spoke with explained that owning a business doesn't automatically disqualify you from UI benefits in New York. What matters is: 1) You report ALL income from the business on your weekly claims, even if it's zero, 2) Your business activities don't prevent you from being available for full-time work, and 3) You're actively job searching. Since your LLC is making such minimal income ($200-300 some months), you're definitely not at risk of exceeding your weekly benefit amount. I've been collecting for about 4 months now with no issues. The most important thing is that transparency you showed by mentioning it upfront - that works in your favor. Keep doing your weekly claims honestly and don't stress too much. Your situation sounds textbook for what they allow.

I'm dealing with a really similar situation right now! I have a small freelance graphic design business that I started before losing my main job in January. Some months I might make $150-400, but many months it's literally $0. When I filed my UI claim, I was so nervous about mentioning the business because I thought it would automatically disqualify me, but reading everyone's responses here is making me feel so much better about being upfront about it. I've been reporting everything on my weekly claims and marking weeks with no business income as $0. The hardest part for me has been the anxiety of not knowing if I'm doing something wrong, especially since it can take forever to get through to someone at NYS Department of Labor to ask questions. It sounds like as long as we're transparent, reporting accurately, and the income stays minimal, we should be okay. Thanks everyone for sharing your experiences - it really helps to know we're not alone in navigating this confusing system!

I'm going through this exact situation right now and it's been such a source of stress! I lost my full-time marketing job in March but I also have a small online store that I run as an LLC. Most months it brings in maybe $100-250, some months nothing at all. When I first filed my UI claim, I was terrified to mention the business because I thought they'd automatically deny me, but I knew I had to be honest. I've been doing my weekly claims for about 6 weeks now and reporting all income (including $0 weeks), and so far no issues. Reading everyone's experiences here is incredibly reassuring - it sounds like as long as we're transparent, keep the income reported accurately, and can show we're available for full-time work, NYS Department of Labor is reasonable about these situations. The hardest part is definitely the uncertainty and not being able to easily get clear answers from them directly. But seeing so many people successfully manage similar situations gives me confidence I'm on the right track. Thanks to everyone sharing their stories!

I'm new to this community but found this discussion really helpful since I'm dealing with almost the exact same situation! I just started collecting UI benefits after losing my job in April, and I also have a small service-based business (pet sitting/dog walking) that brings in maybe $150-400 some months, but often nothing. Like many of you, I was super anxious about mentioning it when I filed, but I knew I had to be honest. Reading everyone's experiences here has been such a relief - it sounds like the key is just being transparent about everything and reporting all income accurately on the weekly claims. I've only been doing claims for about 3 weeks so far, but no issues yet. It's really reassuring to see so many people successfully navigating this by just being upfront about their small businesses. The income from pet sitting is so inconsistent and minimal that it definitely doesn't interfere with my job search or availability for full-time work. Thanks everyone for sharing your stories - it really helps to know I'm not the only one dealing with this kind of situation!

I'm dealing with a very similar situation and this thread has been incredibly helpful! I lost my main job in February but I also have a small consulting LLC that I started a couple years ago. Like many of you, it brings in very inconsistent income - maybe $300-500 some months, but often $0 for several months in a row. When I filed my initial UI claim, I was completely transparent about the business because I figured honesty was the best policy, but I've been so anxious about whether I'm doing everything correctly. Reading all your experiences has really put my mind at ease - it seems like the common thread is being upfront about the business, accurately reporting all income (including $0 weeks), and demonstrating that you're available for full-time work. I've been collecting for about 2.5 months now with no issues, and I always report my business income when I have it. The consulting work is project-based and completely flexible, so it doesn't interfere with my job search at all. It's such a relief to see so many people successfully navigating this same situation by just being honest and following the reporting requirements. Thanks everyone for sharing your stories - this community is amazing!