I live in Texas and was laid off in Sept. I decided to start up a little company doing handmade crafts. I have done some craft fairs but haven't made a lot. I need to know if collecting unemployment is okay or do I need to claim it when I submit my claim? Also, should I change the owner to my husband that is employed. I really need help and not sure where to turn to. I'm really scared starting up and don't have a lot of answers for myself. I'm not sure if I should get a lawyer or just try and make it on our own.
Tell me more
×
Answers OnStartups is a question and answer site for
entrepreneurs looking to start or run a new business. It's 100% free, no registration required.
|
Owning a legal entity does not by itself in my state negate unemployment. I suspect that is common. I'm not an attorney but there is plenty of steps you could do prior to opening up shop and selling because its just a hobby until there is revenue. But you do need to still do everything that qualifies you for unemployment while your taking it which likely means keep looking for work. If it is an issue do the steps you can that doen't require a legal entity. Say your programming something then that is just a hobby that your doing while looking for work. There are expense capturing concerns related to the steps in starting a business but different states allow for recouping that when you create the legal entity. See an accountant and attorney for getting a definitive oppinion. |
|||
|
|
|
It generally isn't permissible to run a business while on unemployment. There is a program that is called the "Self Employement Assistance Program" in New York that will allow you to start a business while collecting benefits. Unemployment rules are largely funded by and created by the Federal gov't. Your state may have a different name for the program. |
|||
|
|
|
I agree with Tim's comment. Ultimately, it's up to the state, but I do know of multiple entrepreneurs who have collected unemployment while doing a startup. The difference, however, may be that you will have income, whereas most of these folks were not getting any money for their time. Check with the state - as Tim said, anonymously if possible. |
|||
|
|
