Starting a Business While Receiving Unemployment
In this day and age, more and more people are choosing to start their own business ventures rather than work for someone else. If you are suddenly laid off from your job and have a good business idea, you may be considering a try at self-employment. While self-employment can be very rewarding and lucrative, it can take time to get a new business off the ground. During this time, many aspiring entrepreneurs rely on unemployment benefits to pay the bills.
Receiving unemployment benefits while starting a business can be complicated for many reasons. First, in order to be eligible for benefits, the following must be true:
- You must be actively looking for work.
- You must be willing to accept any offer for acceptable work.
- You must be earning less than a certain amount of income.
If you are trying to start your own business, one or even all of the above factors may be compromised. For example, starting a business takes a lot of time, which can be seen as time you should be spending looking for work. In addition, if you want to run your own business, you may not be willing to accept job offers that may come your way. Finally, as your business gets off the ground, you may begin earning income that could compromise your benefits.
There can be solutions for many people on unemployment with entrepreneurial spirits, however. Some states have self-employment assistance (SEA) programs funded by the Middle Class Tax Relief and Job Creation Act of 2012. These programs allow qualified individuals with viable business plans to receive unemployment as long as they work full time to start their business. Not every state has such a program, however, so you should discuss this option with an experienced unemployment attorney.
You should always be aware of the requirements of your state. Missouri, for instance, instructs people to discuss any self-employed income with the Department of Employment Security (DES). If you fail to do so and are earning too much self-employed income while receiving benefits, you could be accused of unemployment fraud.
Discuss Your Situation With an Experienced Unemployment Attorney Today
If you want to start a business while receiving unemployment, please call to discuss your case with a skilled unemployment lawyer at the Law Offices of Kenneth P. Carp. Contact us today at (636) 947-3600 for help with any type of unemployment matter.