Can you own an LLC and collect unemployment in NYS Department of Labor system?

Yes, you can collect unemployment while owning an LLC in New York, but there are specific rules you need to follow. The key is that you must report any income from the LLC on your weekly claims, even if it's zero. Since you're not actively working through the LLC right now, you should answer 'no' to the self-employment question as long as you're truly not performing any services for the business. Just make sure you report any future income if you do start working through the LLC again.

I had a similar situation with my photography LLC. The NYS Department of Labor told me that owning the business isn't the issue - it's whether you're actively working and earning money from it. Keep detailed records of your inactivity in case they ask for documentation during an adjudication review. Also, if you do any work through the LLC while collecting benefits, report it immediately on your weekly claim even if you haven't been paid yet.

ugh the whole system is so confusing!! i have an etsy shop which is technically a business and they made me jump through hoops for months. kept asking for bank statements and everything. honestly the adjudication process was a nightmare

If you're having trouble getting through to NYS Department of Labor to clarify this, I found a service called Claimyr (claimyr.com) that helped me reach an actual agent when I couldn't get through their regular phone lines. They have a video demo at https://youtu.be/qyftW-mnTNI that shows exactly how it works. It was super helpful when I needed to explain my consulting business situation to someone who could actually make notes on my account.

just want to say good luck with this - the whole UI system is such a mess right now. took me 6 weeks to get through adjudication for something completely unrelated

I went through something very similar with my consulting LLC. The main thing is being completely transparent - since you disclosed it upfront, you're already on the right track. Just make sure you answer "no" to any questions about self-employment work for the weeks you're truly inactive, and always report zero income from the LLC on your weekly claims. Keep your LLC bank statements and any records showing no activity during your unemployment period, just in case they request documentation later. The fact that you're being proactive about this puts you in a much better position than people who try to hide business ownership.

Thanks for posting this question - I'm dealing with something similar but with a different twist. I have an LLC that I set up for some contract work, but unlike your situation, I actually have a signed contract that's supposed to start in a few weeks. The work hasn't begun yet and I haven't received any payments, but I'm wondering if having a future contract affects my eligibility? Should I report the signed contract even though no work has started? The NYS system seems to ask about "work performed" rather than contracts signed, but I want to make sure I'm not missing something important here.

I'm in a very similar boat with my graphic design LLC! I formed it about 18 months ago for some freelance projects, but haven't done any work through it since getting laid off from my full-time job in January. The key thing I learned after speaking with a DOL representative is that you need to be 100% honest about having the LLC but also clear about your current activity level. On your weekly claims, when they ask about self-employment, you should answer based on whether you actually performed any work that week - not just whether you own the business. Since you're not actively working through the LLC, you'd answer "no" to self-employment questions. Just make sure you have documentation ready (like bank statements showing no recent activity) in case they review your claim later. The fact that you disclosed it upfront is definitely the right move!

I'm dealing with almost the exact same situation! I have an S-Corp that I set up for some consulting work, but I've been completely inactive since losing my W-2 job in February. What really helped me was calling the DOL and speaking directly with a claims specialist who walked me through how to handle this properly. They confirmed that owning a business entity (LLC, S-Corp, etc.) isn't disqualifying as long as you're not actively working through it. The key is consistency - always answer the self-employment questions based on actual work performed that week, not business ownership. Since you disclosed it upfront and you're truly inactive, you should be fine. Just keep detailed records of your inactivity and never hesitate to report any future income immediately if you do start working through the LLC again. The transparency you've shown from the beginning will work in your favor if they ever review your claim.

I'm going through something really similar right now! I have an LLC for web development that I started in 2023, but I haven't taken on any projects since getting laid off in October. What's been stressing me out is the weekly certification questions - sometimes I second-guess myself on how to answer the self-employment parts even though I know I haven't done any work. Reading through everyone's responses here is super reassuring, especially hearing that multiple people have successfully navigated this by being upfront about ownership while clearly reporting no activity. I think the key takeaway for me is that the DOL cares more about actual work performed than just owning a dormant business entity. I'm definitely going to start keeping better records of my LLC's inactivity though - just bank statements showing no transactions and maybe a simple log documenting that no work was performed each week. Better safe than sorry if they ever decide to review my claim!

I'm in a nearly identical situation with my marketing LLC! I formed it in 2022 for some side projects, but it's been completely dormant since I got laid off from my main job in November. What's been most helpful for me is treating the weekly certifications like a simple factual check: "Did I actually do any work through my business this week?" Since the answer is consistently no, I answer no to the self-employment questions. I've also been keeping a simple spreadsheet tracking my LLC bank account (which shows zero activity) and noting "No work performed" each week just in case they ever need documentation. The most important thing seems to be that you were honest about the LLC ownership upfront - that shows good faith and should protect you from any overpayment issues down the line. I was initially worried about the same thing, but reading through all these responses from people who've successfully navigated this exact situation is really reassuring. Just stay consistent with your reporting and keep those records handy!

I'm so glad you posted this question! I'm dealing with almost the exact same situation with my photography LLC that I started in 2022. I made very little income through it (maybe $1,200 total) and haven't done any photography work since getting laid off in December. Like you, I disclosed the LLC when I applied for unemployment, but I've been second-guessing myself on the weekly certifications. Reading through all these responses has been incredibly reassuring - it sounds like the key is being honest about ownership (which we both did) while accurately reporting that we're not actively working through our businesses. I've started keeping a simple log of "no LLC activity" each week along with my bank statements showing zero transactions, just in case they ever need documentation. The fact that so many people here have successfully navigated this exact situation while being transparent gives me a lot more confidence. Thanks for asking the question that I think a lot of us dormant LLC owners were wondering about!

I'm in a very similar situation and this thread has been incredibly helpful! I have an LLC for freelance graphic design that I set up in early 2023, but it's been completely dormant since I was laid off in January. Like many of you, I disclosed it upfront when filing for unemployment but have been anxious about the weekly certifications. What's given me the most confidence is reading how consistent everyone's experience has been - the DOL really does seem to focus on actual work activity rather than just business ownership. I've been answering "no" to self-employment questions since I'm truly not performing any work through the LLC, and I'm keeping detailed records including bank statements showing zero activity and a weekly log noting "no work performed." The key takeaway for me is that transparency from the beginning (which we all did by disclosing our LLCs) combined with accurate reporting of current activity level is what matters most. It's so reassuring to be part of a community where people share their real experiences with these confusing situations!

I'm dealing with a very similar situation and this thread has been incredibly helpful! I have an LLC for freelance writing services that I established in mid-2023, but it's been completely inactive since I was laid off from my full-time job in March. Like everyone else here, I disclosed the LLC ownership when I first applied for unemployment benefits, but I've been really anxious about whether I'm handling the weekly certifications correctly. Reading through all these experiences has given me so much reassurance - it's clear that the NYS Department of Labor focuses on actual work performed rather than just owning a dormant business entity. I've been consistently answering "no" to the self-employment questions since I'm genuinely not doing any work through the LLC, and now I'm going to start keeping the weekly activity log that so many people have recommended. It's amazing how similar all of our situations are, and seeing that transparency from the beginning combined with accurate reporting of no current activity has worked for so many people here really puts my mind at ease. Thank you all for sharing your experiences - this community is such a valuable resource for navigating these confusing unemployment situations!

I'm new to this community and dealing with almost exactly the same situation! I have an LLC for freelance web design that I formed in early 2023, but it's been completely inactive since I got laid off in February. Like you, I disclosed it upfront when filing for unemployment but have been really nervous about the weekly certifications. Reading through everyone's responses here has been incredibly reassuring - it seems like the consensus is that owning a dormant LLC isn't disqualifying as long as you're transparent and accurately report no work activity. I've been answering "no" to the self-employment questions each week since I'm truly not performing any work through the LLC, but I was second-guessing myself until I found this thread. I'm definitely going to start keeping that weekly activity log that several people mentioned, along with my LLC bank statements showing zero transactions. It's such a relief to see so many people who've successfully navigated this exact scenario by being honest upfront and consistent with their reporting. Thanks for posting this question - it's exactly what I needed to read!

I'm new to this community and facing almost the exact same situation! I have an LLC for freelance content writing that I established in late 2022, made very minimal income from it (around $400 total), and it's been completely dormant since I was laid off in January. Like you and so many others here, I disclosed the LLC ownership upfront when applying for unemployment, but I've been really anxious about whether I'm handling the weekly certifications properly. Reading through all these responses has been incredibly helpful - it's amazing how many people are dealing with nearly identical situations! The consistent advice about being transparent with ownership while accurately reporting zero work activity really gives me confidence. I've been answering "no" to the self-employment questions since I'm genuinely not doing any work through the LLC, but seeing everyone else's experiences validates that I'm on the right track. I'm definitely going to start that weekly activity tracking log that multiple people have recommended - it seems like such a smart way to document everything just in case. Thank you for posting this question and thank you to everyone who shared their experiences. This community is such a valuable resource for navigating these confusing unemployment situations!

I'm new to this community and dealing with almost the exact same situation! I have an LLC for freelance photography that I set up in 2023 for some wedding shoots, but it's been completely dormant since I got laid off from my marketing job in December. Like you, I disclosed the LLC when I first applied for unemployment but have been really stressed about the weekly certifications. Reading through all these responses has been such a relief - it's incredible how consistent everyone's advice is about being transparent with ownership while accurately reporting no work activity. I've been answering "no" to the self-employment questions each week since I'm genuinely not doing any photography work, but I was second-guessing myself until I found this thread. The weekly activity log idea that several people mentioned is brilliant - I'm definitely going to start tracking "no LLC activity" each week along with keeping my bank statements that show zero transactions. It's so reassuring to see that multiple people have successfully handled this situation by being upfront from the beginning and staying consistent with their reporting. Thank you for asking this question - it's exactly what I needed to read to feel confident about how I'm handling my claims!