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I am sorry you lost your job. Unfortunately, 1099 employees (which are considered “independent contractors”) cannot collect unemployment benefits. One reason is because 1099 employees do not contribute to an employer’s unemployment taxes and thus are not eligible to withdraw against it.
Sometimes independent contractors argue that they are really employees and should get unemployment insurance. If you worked at the employer's site, had hours dictated by the employer, worked under the employer's supervision / management, and used the employer's equipment, you were an employee. You could file a claim for unemployment and tell the state you are contesting the 1099 status that was forced on you. In your situation, it may be a bit more difficult because you had your company as the independent contractor. However, there could be a factual issue one could argue because if there was no contract between the employer and your LLC, you could argue that the LLC is a disregarded entity for tax and unemployment purposes. In any event, ultimately, you would have to prove that you were an employee of the company because they had control of your day to day activities (like you said, they insisted that you work only for them). Sometimes in situations such as yours, if you state that you will attempt to get unemployment insurance, the company will end up negotiating a settlement just so they do not go through the hassle of having the government review all of their accounting records.
Feel free to ask follow up questions before providing a rating. This information provided to you is informative and helpful. If you need clarification, feel free to hit reply so we can work on any clarification prior to providing a rating. Otherwise, please provide a positive rating now without an additional cost to you so I receive credit for the services I am providing to you. I am doing my best to help you. Thank you, Damien