I got laid off 2 weeks ago. I am currently collecting unemployment checks, but am looking to invest in a franchise business. It will take some time before the business makes any money. Do I have to forfeit my unemployment checks the minute I the LLC is created, or is it only once I start receiving income from the business? Thank you,
Unemployment will vary depending on the state you reside in. Your best bet would be to read the book they sent you in the mail. I know that in Pennsylvania and Colorado you can not actively start a business while on unemployment compensation
Hi bigwhoop, Contact your state department of revenue, the IRS, and the unemployment agency. If you'd rather not speak to them, you might browse their websites for an answer. I don't see why you couldn't at least form a business without losing benefits. The only way your benefits would likely decrease is if you started experiencing an income from your biz. The only likely way that you would see your unemployment benefits disappear is if your biz income exceeded X amount of dollars a month for X number of months. The government wants you to make money so that they can collect more taxes. I wouldn't worry about inquiring. ~Newbie Shield~
In Canada, you can start a business however, you must also report every penny you make. Now, this is how it will work here. Say you are getting $350 a week in benefits from IE, and you make $320 in a week from your new business, you report the $320 and then IE will send you $30 bringing you to their maximum of $350 for the week. If you earn over $350 in a week, IE will not pay you anything for that week. As mentioned above, do check with the Administrator for your Employment Insurance program as to the exact rules for starting a business, reporting income while on IE etc.
Would that apply to home affiliate marketing businesses as well? Clickbank, for example, does not recommend a SSN be entered or an EIN to be obtained from the IRS until at least the first $600 is made. Also, I am doing affiliate marketing as kind of a free-lancing sole proprietor. I have no desire at this time or see a reason to LLC or incorporate so if something happens to my current conventional job - when would I really need to report any extra income from online business to the unemployment bureau? I sure as heck don't plan on reporting until a claim is firmly established in my favor (no contesting by employers, etc) and I receive actual checks from the state if i'm making next to nothing from affiliate marketing in the beginning. If I make modest money online, I can understand informing the unemployment bureau of the difference. Do you have any tips on this scenario? Please let me know.
Hi, Jeff. Small world, I live in Tampa, FL too - in northwest Hillsborough Cty. I just read something online and unluckily cannot remember where I saw it. This was regarding someone earning a few dollar's from affiliate marketing that they reported while on unemployment compensation and it created alot of problems for them and they lost their benefits and are now fighting to get them back. It made little sense because the amount made was minimal and less than their unemployment benefit. I do believe however that this was in Canada. Before reporting earnings in your own business, remember that if you are keeping track of and deducting cost's to run it, only profit above your cost's is earnings. Then, as Newbie Shield stated, it would just reduce the benefit by the amount of earnings.
Anna Denise Perhaps you are thinking of the lawyer in the states that lost her benefits when she earned a couple hundred with google adsense. Article here.
Newbie Shield: Contact your state department of revenue, the IRS, and the unemployment agency. If you'd rather not speak to them, you might browse their websites for an answer. Bingo. I would just start with the unemployment agency and see what they say. However, it does take a lot of time to make a profit. It may not be the best thing to invest the money you are getting in something like that, since you might not see a profit for a while, although I suppose some of that might depend on how much you need right now to pay all of your bills.
BigWhoop, I'm not sure where you are from but I am in the same position as you. I am collecting unemployment but thought I would give the internet a shot while I had off until spring semester of college. Anyways, I went to PA's Open for Business website which I found through the dept. of labor and industry website. Basically what it says is that every situation is different. Here is what I copied. "The Pennsylvania Open for Business Online Business Registration Interview (OBRI) is a business registration tool and is not intended as a replacement for professional consultation with qualified practitioners. The laws and regulations governing business start-up, practice, and expansion are varied and compliance with such standards depends upon the particular circumstances of a business." I think that I will do what it says and get a professional consultation with either H&R Block or an professional accountant of some sort. Hope this helps you...
A Severince Package would have helped tremendously but I would have to agree with cdsites17 upon this matter
