Does CA EDD care about my no-income 'job' at my S-Corp?

October 3, 2011 9:22 PM

Terminated from a job in California, applying for unemployment. And I am an officer at a shambling, revenue-free California S-Corp. I have never taken a salary or distributions from it. The company has no employees or contractors. Do I still list the S-Corp on the unemployment application for Q. 33 Unemployment History?

I started a company a few years ago. I've never drawn a salary or taken a distribution.

I'm the President and a 50%+ owner. The company is technically alive (registered and pays the minimum CA corp tax) but has had no revenue since Nov 2010. The company had approx $20k in revenue and $15k in expenses in 2010.

I took a full-time job with another company in 2011 and was recently fired. The California unemployment form asks for prior employers and wages going back 18 months.

Does the S-Corporation count even though I had no wages or anything else from it, like: distributions, sweetheart loans, and stock vesting.

Or, would listing as an employer a company that paid me nothing just make the unemployment process needlessly complex?

Short version: Will CA EDD blow a fuse if I do/don't list the S-Corp?

posted by anonymous to Law & Government (2 answers total)

You are self-employed and unemployed and may collect.

I can't speak to whether your benefits will be delayed if you say yes, but ultimately you will receive them. As long as you're not collecting income as an employee and can fulfill the work search requirements of CA EDD, you're able to simultaneously own your S-Corp shares and direct the affairs of the company just like you can own shares of Apple and vote in elections.
posted by michaelh at 9:42 PM on October 3, 2011

I took a full-time job with another company in 2011 and was recently fired.

if you were fired, not laid-off, this may be your bigger problem in terms of trying to collect unemployment.
posted by violetk at 12:24 AM on October 4, 2011