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Are partners in a LLC eligible for unemployment benefits?

I've worked for my company for over 10 years. I was only 10% owner and according to my k-1's they have been fluctuating my ownership stake over the past few years. On the k-1 they also said they were paying me royalties, which was untrue. They say as a partner I cannot receive unemployment, but if that's the case, why was I receiving medical benefits from the company and being treated as an employee?? Do I have any ground to stand on??


You're asking about something I think you'd need to have an attorney help with .. after they review the operating agreement.

All I can do is to show you where you might find relevant information as to whether you might of been intentionally misclassified.

I have no idea what health benefits have to do with an argument for proving you were an employee.

However, I know being treated like an employee and having the same type of expectation placed upon you as an employee .. might be something to look into.

You should see what tests are used by your state's unemployment dept. and the IRS to distinguish between employees and a self employed independent contractor.

See Table 1-7 in the Coverage Chartbook located at Doleta. It has a state by state listing for covereage of corporate officers and the ABC test for determination employee or self employed person .. who is able to direct and control their own actions at work

IRS info about misclassifying employees.

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