Can LLC owner collect unemployment benefits from Washington ESD?

LLC owners generally can't collect regular unemployment benefits because you're considered self-employed, not an employee. Washington ESD typically requires you to have been an employee paying into the system through payroll taxes.

Actually, it depends on how your LLC is set up. If you elected S-Corp tax status and paid yourself wages with payroll taxes, you might be eligible. Did you have W-2 wages from your own LLC?

I had this exact same issue last year! Spent hours trying to get through to Washington ESD to ask about my situation. Finally used Claimyr.com to actually reach an agent - they have this system that calls you back when an agent is available. The agent told me that without W-2 wages, I couldn't qualify for regular unemployment.

Wait, what about if you had employees and paid into the system that way? I have an LLC with two employees and I'm wondering if that changes anything for me as the owner.

this is so messed up, small business owners get screwed over by everything. we take all the risk and then when things go bad we get no safety net while our employees can collect unemployment

There might be other programs available though. Have you looked into things like SNAP or other assistance programs while you figure out your next steps?

One thing to consider is dissolving your LLC and looking for employment elsewhere. Once you're working as an employee again and paying into the unemployment system, you'd be eligible for benefits if you lose that job.

Before you give up completely, you might want to consult with an employment attorney or tax professional. There are some edge cases where LLC owners might qualify, especially if there were specific circumstances around how wages were paid or if you had a business partner who was treated as an employee.

Just to follow up on my earlier comment about Claimyr - they were super helpful in getting me connected to the right Washington ESD department. Saved me probably 20+ hours of trying to call and getting busy signals or being hung up on.

For what it's worth, I know someone who was an LLC owner and managed to get benefits, but they had elected S-Corp status and been paying themselves wages for over a year before their business failed. So it's not impossible, just depends on your specific situation.

I'm in a similar boat. LLC owner, no W-2 wages, business is struggling. Did you ever find out anything definitive about other programs or assistance?

honestly the whole system is rigged against small business owners. we're the ones creating jobs and taking risks but when we need help there's nothing

Quick question - if someone dissolves their LLC and then gets hired somewhere as an employee, how long do they have to work before they'd be eligible for unemployment if they lost that job?

This thread has been really helpful. I'm in the process of closing my LLC and this confirms I made the right decision to start looking for employee positions instead.

Has anyone tried contacting WorkSource about training programs or other support for business owners transitioning to employment?

Just want to emphasize what others have said about getting professional advice. Employment law around business owners and benefits can be tricky, and there might be options you haven't considered.

Update on the Claimyr service mentioned earlier - I tried it and it actually worked! Got connected to a Washington ESD agent within a few hours instead of days of trying to call. Definitely recommend if you need to speak with someone directly about your specific situation.

Thanks everyone for all the insights. This has been way more helpful than anything I found in my online research.

One last thought - if you do end up dissolving the LLC and looking for employment, consider freelance or contract work in your field while you're job hunting. It's not ideal but it's income while you transition.

Really glad I found this thread. Going through the same thing and now I know I need to either put myself on payroll going forward or start looking for employee positions elsewhere.

I went through a similar situation with my single-member LLC in 2022. Like others have mentioned, without W-2 wages you won't qualify for regular unemployment benefits through Washington ESD. However, I'd suggest checking if you might be eligible for Pandemic Unemployment Assistance (PUA) if it's still available, or looking into Washington State's Self-Employment Assistance Program - it's designed specifically for people transitioning from self-employment to starting a business or finding employment. Also worth noting that some counties have emergency assistance programs for small business owners. Don't give up without exploring all your options first!