Can you start an LLC while on Washington ESD unemployment benefits?

That's a relief! So I can get all the paperwork filed and set up the business structure without it impacting anything?

Exactly. The LLC formation is just paperwork. Washington ESD only cares about actual work performed and income earned.

What do you mean by work vs business setup? Where's the line?

Setting up your LLC, getting business licenses, creating a website - that's all prep work. Once you start actively seeking clients or doing actual consulting work, that's when you need to report it even if you haven't been paid yet.

Never heard of that service before. Does it actually work or is it just another scam?

It's legit! I was skeptical too but it really did get me through to Washington ESD when I couldn't get past the busy signals. Worth it when you need answers about something this important.

Good point about the job search requirements. I'm still applying to regular jobs and doing my 3 work searches per week.

Perfect. As long as you're meeting those requirements and reporting any income accurately, you should be fine.

That doesn't sound right. You don't have to report LLC formation to Washington ESD, only income and work performed.

maybe i'm misremembering the details but they definitely had problems. better safe than sorry imo

The confusion might be about when they started actually working through the LLC vs just forming it. The timing matters a lot.

No, having a partner doesn't change the rules. Both of you would follow the same guidelines about reporting income once the business starts generating revenue.

Thanks! We're both being really careful to follow all the rules since we can't afford to lose our benefits right now.

They actually do have some info on their website, but it's buried in the handbook. The problem is every situation is a little different.

Yeah I've tried reading through all that stuff and it just makes me more confused lol

Great to hear! Just remember to start reporting once you begin actual work activities.

Awesome! Hope your consulting business takes off once you're ready to launch it.

How did you get through to them? I can never reach anyone when I call.

I used that Claimyr service someone mentioned earlier. Worked like a charm - got connected to an actual person instead of dealing with busy signals all day.

Can you explain that difference? I thought having an LLC meant I was running my own business.

You're right that the LLC makes it your business. I was thinking more about tax implications and how you structure client relationships. For Washington ESD purposes, any income from the LLC gets reported the same way.

That's encouraging to hear! Did you have to do anything special when you started actually taking on clients?

Just reported the work and income on my weekly claims like any other job. Washington ESD treats self-employment income the same as regular employment income for benefit calculations.

What's the income limit? I want to make sure I understand this before I start taking on projects.

It depends on your weekly benefit amount. Generally if you earn more than 1.5 times your weekly benefit amount, you won't get any unemployment for that week.

Right, and there's a formula for partial benefits if you earn less than that. It's all explained in the Washington ESD handbook.

As long as you're meeting your job search requirements and are genuinely available for full-time work, having an LLC shouldn't be a problem. The issue would be if you turn down job offers because of your business.

That makes sense. I'm definitely still looking for regular employment - the LLC is more of a backup plan.

That depends on what type of consulting you're doing and your local requirements. The LLC formation and business licensing are separate processes.

Thanks! I'll check with my city about their specific requirements.

Yeah, I figure I might as well use this time productively to get all the legal stuff sorted out.

Smart approach. Just don't let the business planning distract you from your job search activities.

How much does something like that cost? I'm already tight on money being unemployed.

Check out their website at claimyr.com - they explain how it works. For me it was worth it to get peace of mind about doing everything correctly.

That's exactly what I'm hoping for! Did you have any overlap period where you were earning from the LLC and still collecting some benefits?

Yes, for about 6 weeks I was reporting partial income from consulting work. Washington ESD reduced my benefits accordingly but I was still getting some unemployment while building up my client base.

Good advice! I'll start a folder with all the paperwork and dates.

Exactly. Better to have too much documentation than not enough if issues come up later.

Glad it helped! I was really nervous about it too but everyone's experiences have been reassuring.

The key is just being honest and following the reporting rules. Washington ESD isn't trying to trap people - they just want accurate information.

That's a great idea! I hadn't thought about the banking side of things yet.

It really helps keep everything organized. Plus some banks have good small business account options for new LLCs.

This is exactly the kind of detailed experience I was hoping to hear about! The distinction between business setup vs active operations makes so much sense. I'm planning to do the same gradual transition approach once I'm ready to start taking on clients. Did you find that Washington ESD was pretty understanding about the whole process when you were reporting your consulting income?