Unemployment benefits and start-up business?

Question Details:

While receiving unemployment benefits, can you start a small manufacturing business (LLC) and continue to receive unemployment benefits if you are not taking any wages/salary? Or, if during the business start up process, there are no sales/income to the company?

Asked 10/28/2009 under Employment and Labor | 719 View(s) | More Legal Topics

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Employment and Labor Law Answers

Deborah Barron / Barron Law Offices Answered 2 years ago | Contributor with 0 answers This attorney is licensed in California

Since you would be in the "start-up" phase and not actually making money or taking a salary you can continue to get unemployment benefits.  The EDD does require that you be available for job applications and if they call you, you must tell them you are available for work.  It is a grey area from a legal perspective since technically, you are unemployed although it sounds like you are not looking for work, which is a requirement of receiving unemployment insurance benefits.  Please contact me with any further questions.  deborah.barron@lawbarron.com      http://www.lawbarron.com

    

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