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

UPDATED: Aug 23, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Aug 23, 2011Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption