Can you get Washington ESD unemployment if you own a business - sole proprietor situation

Unfortunately, as a sole proprietor you typically can't collect regular unemployment benefits in Washington because you haven't been paying UI taxes. However, you might be eligible for other programs depending on your situation. Have you looked into Washington's self-employment assistance programs?

Wait, I'm confused about this too. I thought if you're not making money from your business you could still file? My friend said she got benefits while her business was slow.

I've been trying to get through to Washington ESD about a similar question for weeks! Their phone lines are always busy and I keep getting disconnected. It's so frustrating when you need answers about your eligibility.

THE WHOLE SYSTEM IS BROKEN! I've been trying to figure out my options as a business owner for months and Washington ESD gives you the runaround. They don't care about small business owners who are struggling.

Let me clarify the actual rules here. For Washington ESD unemployment benefits, you need to have earned wages as an employee where UI taxes were withheld. As a sole proprietor, you're considered self-employed, not an employee of your own business. However, if you had W2 employment within your base period before starting the business, you might still be eligible.

Also important - even if you're eligible based on past W2 wages, you still need to be able and available for work. If you're actively running your business, Washington ESD might consider you unavailable for other employment.

I went through this exact situation last year. Had a small business that failed and needed to file for unemployment. The key is being completely honest about your business status and employment availability when you file your claim.

this is all so complicated! why can't they just have a simple answer

I finally got through to Washington ESD using that Claimyr service someone mentioned earlier. They were able to explain my specific situation and it turns out I don't qualify because I don't have enough recent W2 wages. At least I know for sure now instead of wondering.

Don't forget about the job search requirements too. Even if you qualify for benefits, you'll need to actively search for work and document it. You can't just collect while waiting for your business to pick up.

My cousin had this issue and she ended up having to appeal her initial denial. Sometimes Washington ESD doesn't fully understand complex employment situations on the first review.

just apply and see what happens, worst they can do is say no

Another thing to consider - if you do qualify, your weekly benefit amount will be based on your W2 wages, not your business income. So it might be lower than you expect.

I had a similar situation but with an LLC instead of sole proprietorship. The rules are slightly different but still generally no unemployment benefits available. You might want to look into small business assistance programs instead.

The timing matters a lot too. When did you start your business relative to when you last had W2 employment? Washington ESD looks at this carefully.

For anyone still struggling to get through to Washington ESD about eligibility questions, I can't recommend Claimyr enough. They saved me so much time and frustration when I needed to speak with an actual person about my complex situation.

Make sure you gather all your employment records before applying - pay stubs, tax returns, business records, etc. Washington ESD will want to see everything to determine your eligibility.

One more thing - if you do end up closing your business to apply for unemployment, make sure it's a genuine closure. Washington ESD has ways to verify business activity and they take fraud seriously.

thanks for all this info everyone, this thread has been really helpful for understanding the rules

Good luck with whatever you decide to do! The unemployment system is complicated but there are options if you qualify. Don't give up if you think you have a legitimate claim.