Unemployment benefits in Georgia while having a LLC?
March 18, 2010 7:49 AM   Subscribe

Is it possible to draw unemployments benefits in Georgia, while having a LLC and the business making money, but not paying myself? I got laid off in Atlanta around July 2009, but I had a nice severance package and got paid bi-weekly till December 2009. Around September 2009, I formed an LLC and made a couple thousand through the end of 2009. I am filing taxes for the LLC as needed. So far this year, I've made a bit more, but I'm wondering about unemployment benefits. I have never withdrawn any money from the LLC bank accounts into personal accounts at all and don't plan on it for a while. I can't figure out from the Georgia DOL website if I can get unemployment benefits under this situation. Anyone have better google-fu skills or know otherwise?
posted by anonymous to Law & Government (3 answers total) 1 user marked this as a favorite
Laid off in Georgia the same month you were, and the answer I got from the state DOL was "no". If you're operating or starting a business, you're employed and thus not eligible.
posted by deadmessenger at 8:00 AM on March 18, 2010

Thinking about this a bit more, it's entirely possible that I got my answer from an uninformed idiot. You should certainly ask them yourself, in the hopes that you get your answer from someone who wasn't an idiot.
posted by deadmessenger at 8:50 AM on March 18, 2010

IANAL and there are some incorporation details that are relevant.

But my understanding is that this as income. You can't hide behind the corporate entity (especially a single member LLC) that would be a blindingly huge loophole in the system.

You don't necessarily lose your unemployment benefits entirely but the money you do make would be held against your benefits (ie if your benefit is $1000 a month and you make $500 you should still be able to get $500 in benefits)
posted by bitdamaged at 9:47 AM on March 18, 2010

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