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bigwhoop
Member
Joined: 21 Apr 2009
Posts: 1
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# Posted: 21 Apr 2009 03:24
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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,
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IMoneyReview
Member
Joined: 12 May 2009
Posts: 18
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# Posted: 12 May 2009 20:29
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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
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Newbie Shield
Joined: 22 Sep 2007
Posts: 2027
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# Posted: 22 May 2009 13:33
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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~
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tygersclaw
Member
Joined: 27 May 2009
Posts: 30
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# Posted: 28 May 2009 01:34
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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.
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