Washington ESD unemployment for LLC owner - can I collect benefits?

I did pay unemployment taxes and treated myself as an employee with regular payroll. I have W-2s for the past two years. Should I just go ahead and file?

Yes, definitely file. Washington ESD will review your case during adjudication to determine eligibility. Make sure you have all your payroll records ready.

How long did adjudication take? I'm already stressed about money and can't afford to wait months.

It was about 6 weeks for me. The hardest part was getting through to someone at Washington ESD to check on my claim status. I kept calling but could never get past the busy signal.

Thanks! I'll look into that. I tried calling Washington ESD three times yesterday and kept getting disconnected.

Is that service legit? I'm always skeptical of paying someone to help with government stuff.

I was skeptical too but it actually worked for me. Sometimes you just need to talk to a real person to explain your situation, especially with business ownership complications.

Oh no, I was the only employee but I did make all the business decisions. Does that automatically disqualify me?

Not automatically, but it makes your case more complex. Washington ESD will look at whether you had reasonable alternatives to closing the business and whether the closure was truly involuntary.

Exactly. They'll want to see documentation showing you exhausted all options to keep the business running. Bank statements, client communications, etc.

What kind of documentation did they want? I want to be prepared.

Everything. Payroll records, tax returns, business bank statements, articles of incorporation, evidence of job search efforts before closing. The works.

Because unemployment insurance is designed for people who lose jobs involuntarily. With business owners, there's always the question of whether they truly had no control over the job loss.

i guess that makes sense but still sucks for small business owners

Good point. I am looking for regular employment now. The business thing didn't work out and I need steady income.

Keep detailed records of your job search too. Washington ESD can audit your job search log at any time.

That's encouraging! I definitely have business expenses and W-2s to prove it was a real business.

Yeah, gather all that documentation now. Washington ESD will want to see everything during their review.

LLCs can elect different tax treatments. If you elect to be taxed as an S-Corp, you can pay yourself W-2 wages and avoid some self-employment tax. That's probably what the OP did.

Oh that makes more sense. I was thinking of sole proprietorships.

You're right. I'll file this week and see what happens. Thanks everyone for the advice!

Good luck! Make sure to file your weekly claims on time even during adjudication.

That's not encouraging... I really can't wait months for benefits.

That's exactly why I mentioned Claimyr earlier. Sometimes you need to actually speak with someone to move your case along, especially for complex situations like LLC ownership.

I lost my three biggest clients within two months due to budget cuts on their end. I couldn't sustain the business after that.

Document all of that! Client termination letters, emails about budget cuts, anything showing the closure was due to external factors beyond your control.

8 weeks?? Did you have to do anything special to speed it up?

nope just waited. called a few times but never got through. eventually they just approved it

My income was pretty steady the first year but dropped off significantly in year two. Will that hurt my benefit calculation?

They look at your base period earnings, typically the first four of the last five completed quarters before filing. If year two was lower, it might not affect you much depending on timing.

I did file dissolution paperwork with the state. Should I include that with my unemployment application?

Absolutely! That shows clear separation and that you're not just taking a break from business ownership.

Regular employees don't always get approved automatically. There are plenty of cases that go to adjudication for various reasons.

Fair point, but business owners definitely face extra scrutiny

How much did the whole process cost you with using that service?

I don't want to get into pricing details, but it was worth it for the peace of mind. Check their website for current info.

Will do! Filing my claim tomorrow morning. Wish me luck!

Good luck! Remember to keep filing your weekly claims even during adjudication.

Good advice! I'll make sure to emphasize the employee aspect when I file.

Also mention that you paid unemployment taxes on your wages. That's key evidence of your employee status.