Can a small business owner file for unemployment in Washington state?

Yes, small business owners can potentially qualify for unemployment benefits in Washington, but it depends on how you've been paying into the system. If you've been paying unemployment taxes on wages you've paid yourself (through payroll), you might be eligible. The key is whether you've been treated as an employee of your own business for tax purposes.

The tricky part is proving you're genuinely unemployed as a business owner. Washington ESD will want to see that your business income has stopped or significantly decreased. Just having fewer clients might not be enough - they'll look at your overall business activity.

I was in a similar situation last year with my marketing business. The application process was confusing and I kept getting different answers when I called Washington ESD. Eventually found out about claimyr.com - they help you get through to actual agents who can explain your specific situation. There's a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works.

wait business owners can get unemployment?? i thought that was just for regular employees

Update: I found my tax documents and it looks like I have been paying into unemployment. Going to try filing a claim this week. Any tips for the actual application process?

The Washington ESD website has info about this but it's buried pretty deep. Look under 'employer' section, not just the regular unemployment filing stuff. Took me forever to find it when I needed it.

Been running a small retail store for 5 years and never knew this was an option. My sales have been terrible since covid and I'm barely keeping the doors open. If I close down, could I potentially file for unemployment?

This is all news to me too. What about independent contractors? I've been doing freelance work but not through an LLC or anything formal.

Just want to add that when I went through this process, having documentation was crucial. Bank statements showing the drop in business income, client contracts, everything. Washington ESD wanted proof that I was genuinely unemployed despite owning the business.

My brother went through this with his construction business. He had to prove he was actively looking for work/clients just like regular unemployment. The job search requirements still apply even for business owners.

One thing to be aware of - if your business picks back up while you're receiving benefits, you'll need to report that income. The earnings deduction rules still apply.

ugh the washington esd phone system is impossible. tried calling about this exact question last week and got hung up on 3 times

For anyone considering this, make sure you understand the difference between being an employee of your own corporation versus being a sole proprietor. The eligibility rules are different depending on your business structure.

This thread is super helpful! I had no idea business owners could potentially get unemployment. Filing this info away in case I ever need it with my consulting work.

Word of caution - even if you qualify, the weekly benefit amount might be lower than you expect if your reported wages were minimal. Washington ESD calculates benefits based on your highest earning quarter in the base period.

Final update from my experience - the whole process took about 6 weeks from application to first payment, mostly due to the adjudication review. Having good documentation and being able to talk to an actual person at Washington ESD (through Claimyr) made a huge difference in getting it resolved quickly.

Just wanted to say thanks to everyone who contributed to this thread. As a small business owner myself, this information is invaluable. The unemployment system is so complicated, especially for non-traditional situations like ours.

Update for anyone following this thread: I filed my claim yesterday and it's currently pending. Fingers crossed it goes smoothly! Will update if I run into any issues.

This whole discussion has been eye-opening. I run a small catering business and had no idea this was even a possibility. Definitely going to research this more thoroughly.

One last thing to consider - if you do qualify and receive benefits, you'll need to continue meeting all the regular UI requirements like weekly claims, job searches, and being available for work. The process doesn't end once you're approved.

This is such valuable information! I've been running a small graphic design business and had my main contract end abruptly two months ago. I've been scrambling to find new clients but the market is really tough right now. I set up my business as an S-Corp and have been paying myself through payroll, so it sounds like I might actually qualify. Going to dig through my tax documents tonight and see if I can find those unemployment tax payments everyone mentioned. Really appreciate everyone sharing their experiences here - makes this whole process seem less intimidating.

I've been through a similar situation with my web development business last year. The key thing that helped me was understanding that Washington ESD treats business owners who pay themselves through payroll just like any other employee for unemployment purposes. Since you mentioned you have an LLC and your accountant handles things, definitely check if you've been classified as an employee of your LLC for tax purposes. If you've been paying unemployment taxes on your wages, you should be eligible. Also, start documenting your job search efforts now - networking events, client proposals, even informal conversations about potential work. The adjudication process can be lengthy, but having everything organized upfront really speeds things up. Don't let the complexity discourage you from applying if you've been paying into the system!