I have worked at the same place for 12 years and got laid off. I am currently drawing unemployment and I am getting ready to start a business. I know it will take a while for my business to get going and my question is this... can I continue drawing my unemployment until I am making a profit and can afford to draw a salary from the new business?

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Originally Posted by Laprdh99

can I continue drawing my unemployment until I am making a profit and can afford to draw a salary from the new business?

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Hello L:

In order to be eligible for unemployment, you need to be seeking full time work. More than likely, you'll need to sign a statement to that affect every two weeks..

Now, I'm NOT going to tell you to break the law. I would NEVER do that.

excon

As long as you report each week any income you make from the business, so if you make a profit this week, it will have to be reported.

Thanks for your reply! I have been keeping track of my job searches. I still plan to search for work, I knew that would still be a requirement to continue drawing unemployment. I haven't had any luck yet anyway (which is why I am taking the plunge into business) so I figured I could still search. If I were to get offered a job, I can decide at that point if I need to take it or if I'm at the point that I can pay myself out of the business.

Hello again, L:

Now THAT sounds like a plan.

excon

Another question, do I need to tell the Dept. of Labor of my business venture or do I just report whether I make a profit when I claim my benefits each week?

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Originally Posted by Laprdh99

Another question, do I need to tell the Dept. of Labor of my business venture or do I just report whether or not I make a profit when I claim my benefits each week?

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Hello again, L:

Fill out the forms. Tell the truth, and don't volunteer ANYTHING.

excon

It asks you for any income.

BUT remember if you are a sole owner of a individual owned business, it is not waiting for it to pay you a salary, if you take in 200 dollars , the income minus your costs, is your profit, that is your income, ( even if you don't write yourself a check) Income is any profit you make, not just what you pay yourself out of the business checking account. Unless this is set up as a corporation.

To collect unemployment you have to certify that you are available willing to accept employment. Any day that you are not ready reduces your stipend by 1/4