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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 983
Experience:  Certified Public Accountant
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Its not a tax quesin, its about having a business while

Customer Question

its not a tax quesin
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: its about having a business while collecting unemployment benefits
JA: Is there anything else the Accountant should be aware of?
Customer: can i do that?
Submitted: 3 months ago.
Category: Finance
Expert:  Mark Taylor replied 3 months ago.

Hi, my name is Mark. I will be happy to help you with your question.

Customer: replied 3 months ago.
Can I collect unemployment benefits while starting a business?
Expert:  Mark Taylor replied 3 months ago.

Are you earning any income?

Customer: replied 3 months ago.
I will be earning commission and direct pay eventually
Expert:  Mark Taylor replied 3 months ago.

Please give me a moment I am preparing your response.

Customer: replied 3 months ago.
Should I put the company in my partner
Name?
Expert:  Mark Taylor replied 3 months ago.

You do not need to put the business in your partner's name. To be eligible for unemployment you need to be seeking employment. So you would need to apply for other jobs. You have to be available to work too. If you do make money in the business you would have to disclose this to the unemployment agency. This would reduce the amount of benefits that you receive. The income would be your net income after any expenses.

Customer: replied 3 months ago.
What if I make the business a corporation?
Does that protect me personally from losing benefits?
Expert:  Mark Taylor replied 3 months ago.

If it is a C-corporation if you take any money from the corporation you would need to report this to the unemployment agency. If it is an S-Corporation then you would need to report the net income of the corporation.

Expert:  Mark Taylor replied 3 months ago.

I hope you found this information to be beneficial. If this answered your question please take a few moments to rate my response. A rating is needed in order for me to receive credit for helping you today. The rating bar is located at the top of the page – ranging from 1 to 5 stars. If you need me to clarify aspect of my response or if there are additional areas of the question that you would like me to consider please let me know. I would be happy to continue the discussion. It has been my pleasure helping you today.

Please let me know if you have any questions or need clarification. I am happy to help.

Customer: replied 3 months ago.
My benefits are not enough to survive.
How do protect any other income
From being taxed or subtracted.?
Expert:  Mark Taylor replied 3 months ago.

You would be only taxed on the income that you earn. Unemployment compensation would be considered income. By rule you are supposed to report any income that you receive to the unemployment agency.

Customer: replied 3 months ago.
But, if I earn. Let's say $200.00 week commission....will they deduct $200 from my weekly benefit?
Expert:  Mark Taylor replied 3 months ago.

If you earn $200 a week in commission this should be reported to the unemployment agency. They would likely reduce your benefits by $200.

Customer: replied 3 months ago.
Then I nothing to gain by having my own business.
Expert:  Mark Taylor replied 3 months ago.

You would be building a business.