You are required to report any work you are performing to unemployment whether you are earning money or not. You are working during normal business hours which means you would be unable to accept a job if offered to you. Unemployment is meant for people who are unemployed or partially employed and are seeking full time work. I hold unemployment hearings. This post was edited to remove a link. Please review our Community Best Practices (http://www.sba.gov/community) for more information about how best to participate in our online discussions. Thank you.

I will definitely report any changes to my income to the unemployment agency. You risk having to pay the money back.

There are special rules that govern self-employment and working while receiving unemployment benefits, since everyone's situation is unique - and your's certainly is - you should check with your unemployment office and have this discussion with your unemployment counselor.   In more general terms, starting your own business does not preclude you from receiving unemployment benefits.   The test for whether you are able to collect unemployment are as follows:   1.  You are able to work (if you are disabled there are other programs to help you, like Social Security Disability). 2.  You are actively looking for work. 3.  You have not yet found full-time employment. 4.  You did not make more than your weekly income allowance.  Note that you are able to work part-time and earn income up to a certain threshold, which is determined by the unemployment agency when you make your initial application.   So, if you have stopped looking for full-time unemployment you are most likely ineligible to receive unemployment.   If you are making more per week than your earnings allowance, you may still be eligible for unemployment, but at a lower amount.   I hope this helps.   Greg

Can you collect unemployment if you quit your job? It depends. In most cases, if you voluntarily left employment you are not eligible. However, if you left for 'good cause' you may be able to collect. 'Good cause' would be determined by the state unemployment office and you will be able to make a case for why you are eligible for benefits. If your claim is denied, you should be entitled to a hearing where you can plead your case.

Due to the recent economic downturn, many businessmen and women find themselves in this situation. To help our members understand the do's and don'ts, we published an explanatory guide. Check out Laid Off and Looking to Start Your Own Business? Understand Your Unemployment Benefits First from the Business Law Advisor.

Like many others, I wasn't even fired. I quit. Pure and simple. And I am so glad I did. I am so much happier and more financially secure than I have ever been. I didn't even try to collect unemployment. Sometimes, when you have to make something work, you do. That being said, many web businesses start as part time, and build to being full time. If your business has that potential, you might consider it. MaryAnnBusiness Plan MasterThe Business Plan for a Tough Economy ---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.

Good information, I started a company in Phoenix Arizona and I assume the same rules apply. I was laid off from a company and collected unemployment for a short time, but discontinued when I stopped searching for jobs and began my own business. Emptied my entire 401k, but hey - now I am luckily making more money that I have ever in my past. Joel McLaughlin Dataflurry Website Marketing Message Edited by NicoleD on 12-11-2009 04:59 PM

Your state's employment commission should be able to answer all your questions - I would assume each state is different. But, I do think they all require you to be actively searching for a job. If you state's law in 'full-time' - then start your business part-time - just make sure you are fulfilling your other requirements (like searching for employement) - then see which one takes off first. Even if you get a job first - you can still work your business part time until it can fully support you.

Welcome to the Community! According to Massachusetts' Office of Labor and Workforce Development, the agency that handles unemployment claims, one is no longer eligible to collect unemployment benefits for a number of reasons. One of these reasons is if you are 'working full-time, either self-employed or for an employer'. It seems that you have started your new business so you may no longer qualify. The office has a hotline which may be able to help you further, see here for their phone number. As you start and grow your business, hopefully Business.gov can become a great resource for you. Make sure to check out the Start a Business guide if you have any questions or post any other questions you have on the Community!