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If a person is on unemployment, can he/she become a partner in LLC and continue to be considered unemployed?

Jamaica, NY |

More generally, are unemployment benefits removed if someone becomes a business owner even if there is no income at first?

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Attorney answers 2


Attorney Forman is correct, although it may be possible to still receive some unemployment benefits if you are only partially employed by your business enterprise a few days of the week.

This answer does not constitute legal advice and you should contact an attorney to confirm or research further any statements made in this answer. Any statements of fact or law I have made in this answer pertain solely to New York State and should not be relied upon in any way in any other jurisdiction. Additionally, we also encourage you to reach out to us via Twitter (!/WhiteRoseMarks) or Facebook ( if you have follow up questions as we do not monitor questions after providing an initial answer.


Unemployment considers you working if you have a business, even if no income is earned.

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