Can you still collect unemployment if starting an LLC business?

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Can you still collect unemployment if starting an LLC business?

My husband has been laid off. He works a 20 hour a week part-time job and is trying to start up a small business. He wants to do an LLC but is not sure if he can still collect because he will not be making enough money a week to cover bills. He needs the unemployment check until the business gets up and running.

Asked on June 11, 2012 under Business Law, Connecticut

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

It appears that the self-employed (which should include being self-employed through an LLC which the person created and owns) are eligible for unemployment in your state. Their unemployment benefits each week will be reduced by, I believe, 2/3 of their gross revenue that week, which for an LLC would the LLC's earnings, not necessarily the portion of the LLC's revenue which your husband chooses to take out or pay himself. Here is a a link to a helpful site put out by your state: http://www.ctdol.state.ct.us/progsupt/unemplt/uceligb.htm


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