If my mom got laid off and is starting her own LLC, will she be able to still collect unemployment?

She will not be bringing in any money for at least a few months due to set up and establishing contacts and I wanted to know if she is going to still be able to collect unemployment during that time. If she is able to still collect unemployment, at what point would she have to stop? When she makes her first earnings? Is there a dollar limit that she would have to make?

Asked on August 23, 2011 Florida

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If your mother was laid off by her prior employer from work, she is entitled to receive unemployement benefits for the allowable period under Florida law where she is not gainfully employed as an employee.

If she is in the process of creating a limited liability company for some business venture and will not be drawing a salary from this company as an employee, she will still be unable to collect unemployment benefits from her prior employment.

In such a situation as you describe, most owners of start up companys do not take any sort of a draw or salary, but rather take compensation as a form of "profits" from the company for tax reasons.

Your mother's stoppage of unemployment benefits begins when she become "employed" as an employee or when the time period for her unemployment benefits from her former employer runs its course whichever comes first.

Good question.


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