Can you own a business and collect unemployment benefits from NYS Department of Labor?
I'm really confused about something and hoping someone here can help clarify. I lost my main W-2 job back in December but I also have a small LLC that I started a few years ago that barely makes any money (maybe $200-300 some months, nothing others). When I filed my unemployment claim with NYS Department of Labor, I mentioned the business but now I'm worried I messed something up. The business income is so minimal it doesn't even cover my basic expenses. Am I allowed to collect UI benefits while technically owning this business? I've been doing my weekly claims but I'm stressed they might say I'm not eligible. Has anyone dealt with this situation before?
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Carmen Vega
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.
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Yuki Kobayashi
•Thank you! That's exactly what I was worried about. I have been reporting the income when I get it, but some weeks it's zero. Should I still mark that I'm self-employed even on weeks with no income?
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QuantumQuester
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
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Carmen Vega
•Substantially engaged usually means spending significant time on the business activities that would interfere with looking for work. Occasional Etsy sales probably wouldn't qualify as substantially engaged, but you still need to report any income.
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Andre Moreau
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.
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Yuki Kobayashi
•What kind of documentation did they want? I'm keeping records of everything but want to make sure I have what they might ask for.
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Andre Moreau
•They wanted bank statements showing business income, tax returns, and a letter explaining the nature of my business and how it didn't interfere with job searching. Also had to show I was meeting the job search requirements.
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Zoe Stavros
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.
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Jamal Harris
•That doesn't sound right. If they were reporting the income correctly and it was under their benefit amount, they should have been approved. Did they appeal the decision?
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Mei Chen
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.
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Yuki Kobayashi
•Thanks for the suggestion! I might need that if this gets complicated. Right now I'm just hoping my weekly claims keep going through without issues.
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Liam Sullivan
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
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Giovanni Rossi
•That's reassuring to hear! I think I'm overthinking this whole thing. As long as I keep reporting everything honestly and the amounts stay low, it sounds like I should be okay. The photography business sounds similar to my LLC - inconsistent income that's way below what would actually support me.
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