Can I claim ESD benefits while launching a small business with no income?

Yeah you gotta be careful with that. My friend tried doing something simlar and ESD cut off his benefits cause they said he wasnt 'able and available' for full time work. Doesn't matter if your making money or not, its about if your available to take a job right away.

This is an important question that comes up a lot. The key issue isn't whether you're earning income, but whether you're "able and available for work" as defined by ESD. Here's what you need to know: 1. You must be able to accept full-time work immediately if offered 2. You must be actively seeking work (3 job search activities per week) 3. You must report ALL activities, paid or unpaid, when filing weekly claims The challenge is that if you're spending significant time on your business, ESD may determine you're not truly "available" for full-time work. Some people can successfully balance both, but you need to be prepared to drop your business activities immediately if you get a job offer. I recommend documenting exactly how many hours you spend on the business each week and maintaining excellent records of your job search activities. If questioned, you need to demonstrate that your business activities aren't preventing you from seeking and accepting suitable employment.

There's no specific hour threshold published by ESD that I'm aware of. It's more about whether your self-employment activities would prevent you from accepting suitable work. When you file your weekly claim, there's a question asking if you were "able and available for work each day" - you need to truthfully answer that. If you would turn down a job offer because of your business, then you should answer "no" (which may affect your benefits). Also, there's a question about whether you were self-employed - you should answer "yes" and report the hours worked, even if unpaid. Being transparent is critical, as unreported self-employment discovered later could result in an overpayment assessment.

I went through this exact situation in 2025! The key distinction ESD makes is between a "hobby" and a "business venture." If you're taking concrete steps toward establishing a money-making enterprise (getting business licenses, creating products/services to sell, marketing, etc.), ESD considers that self-employment regardless of current income. What worked for me: I limited my business development to 15-20 hours weekly, documented all my job search activities meticulously, and reported everything honestly on my weekly claims. When asked about self-employment, I would report the hours but clarify "business development activities, no income." I did get flagged for an "able and available" interview at one point, but since I could demonstrate I was genuinely job searching and would immediately accept suitable employment, my benefits continued. Just be prepared to explain how your schedule allows for both activities without conflict.

I kept a simple daily timesheet showing hours spent on job search vs. business activities. When I had my phone interview with the adjudicator, I offered to email it, but they didn't request it - they just asked detailed questions about my availability and schedule flexibility. I was developing a digital marketing consultancy. Importantly, whenever I had job interviews scheduled, I blocked off FULL availability around them and prioritized employment opportunities completely. I think showing that genuine commitment to finding regular employment was what convinced them I was truly "able and available."

Has anyone tried calling ESD directly to get an official answer on this? I've been trying for weeks to get through to someone about a similar question (mine's about freelancing while on UI) and it's IMPOSSIBLE to reach a human being there. I just get disconnected after waiting on hold for 1-2 hours.

Thanks everyone for the advice! Based on what I'm hearing, I think I'll: 1. Limit my business development to evenings and weekends 2. Keep detailed records of both job search activities and business hours 3. Be 100% transparent on my weekly claims 4. Make sure I'm always available for interviews and ready to accept suitable work I might also try that Claimyr service to speak with ESD directly and get their official guidance for my specific situation. I'll update this thread if I learn anything new that might help others in the same boat.

One last important thing to note: If your business progresses to the point where you're getting customers/clients, even if you're not paying yourself yet, you need to report any gross income received by the business on your weekly claims. ESD looks at gross business income, not net profit after expenses. Also, if you've registered your business officially (LLC, sole proprietorship, etc.), make sure you understand how that impacts your "able and available" status. Some business structures could potentially affect your eligibility more than others. Best of luck balancing your job search and entrepreneurial journey!