Can you own an LLC and collect unemployment in NYS Department of Labor system?
I'm really confused about something and hoping someone here can help. I started an LLC last year for some freelance marketing work, but I also had a regular W-2 job that I got laid off from in December. When I filed for unemployment with NYS Department of Labor, I disclosed the LLC on my application but I'm getting mixed signals about whether I can actually collect benefits while owning it. The LLC barely made any money (maybe $800 total last year) and I haven't done any work through it since getting laid off. My weekly claims ask about self-employment but I'm not sure how to answer since technically I own the business but I'm not actively working on it. Has anyone dealt with this situation before? I'm worried I'm going to mess something up and get an overpayment notice.
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Skylar Neal
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.
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Brady Clean
•Thank you! That makes sense. So as long as I'm not actively working through it and report zero income each week, I should be okay?
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Vincent Bimbach
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.
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Kelsey Chin
•This is really helpful - I didn't know about reporting work before getting paid. How detailed do the records need to be?
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Norah Quay
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
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Brady Clean
•Oh no, that sounds awful. Did they eventually approve your claim? I'm hoping since my LLC hasn't been active it won't trigger all that.
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Leo McDonald
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.
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Jessica Nolan
•Interesting - I've been trying to call for weeks about my adjudication issue. Does this actually work or is it just another scam?
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Leo McDonald
•It's legit - they basically handle the calling and waiting for you. I was skeptical too but it beat sitting on hold for hours just to get disconnected.
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Angelina Farar
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
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Paolo Conti
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.
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