Have New LLC with no income Just got laid of from FT job. Can I collect in OK?
I just started an LLC a couple of weeks ago and I just got the call today from my full time job that I'm getting laid off. If my business hasn't made any money as of yet and my only source of income was my full time job am I going to be eligible to collect unemployment?
Should I put the LLC 100% in my wife's name to be able to feed the family until I can get this business going or find a full time job? I'm confused and concerned about this issue. I find it hard to believe I can't get unemployment if my company hasn't even cut me a check or made any money!
This issue of self-employment and it's potential for earnings, or just having a inactive business varies by state.
It can depend on details such as, when you started the business, and a state, that may have set a precedent that shows a history of running a business concurrently with a full-time job is why you are deemed able and available for work. A new business though, well that takes a bit of time doesn't it?
Self employment can affect freelancers, like those who write for others once in a while but mostly on their own blog in hopes of making a living. It just depends on what state we're talkin' bout and then, we'll still have to hope it's a state that has a good resource to check out other than the UI laws.
The issue isn't just unemployment fraud, like when someone going into business doesn't report .. maybe a sales commission earned by a self employed independent sales rep that turns out to be really an employee whose employer is trying to skirt the additional expenses of needing employees.
When a person is on the up and up, reporting earnings from their own business might wipe out any partial unemployment benefit and if that happens it may throw a flag and if that happens, it's
not a stretch to think they might have their benefits suspended pending an investigation and wind up having to explain to a friendly unemployment claims adjudicator why they should believe you're still able and available and looking for a "job" of the UI covered variety when you actually have your own business to work in.
If you don't report earnings from your new company and just collect the benefits .. I would be afraid the UI dept. might also be cross checking other state, or federal databases and end up detecting something that leads them to believe you committed unemployment fraud .. down the road a quarter, or two.
If it were me, I think I would put the LLC in my spouses name because that is a legal thing you can do, to protect yourself from becoming suspect .. unless it would somehow negatively impact her.
Who knows, maybe my "spouse" might actually make a go of the business quickly because of all the free help they got from me during my unemployed spare time.
You know .. the time left over after meeting all the job search and other requirements of the re-employment half of the UI department, going to interviews for suitable jobs, knowing which jobs aren't suitable, preferably before the interview is over .. etc., etc.
When Unemployment-Tips became my business .. I did not allow it to happen until I got the monkey off my back when I stopped filing for weekly benefits
Anyway, I only received them because I certified each week I had answered all the questions truthfully .. under penalties of perjuries.
I had a hard time explaining to my own spouse why I wouldn't be able to pull down the weekly bennies I had left anymore, but when I explain to him about overpayments he got it.
Want to tell me what state you're in? Maybe I could find a better resource that helps explain how starting and running a business while receiving unemployment benefits in the state works.