I am currently collecting unemployment. I may have the opportunity to perform some consulting work, so I started a new business. However, before I start consulting, I wanted to know if I can collect unemployment while both looking for employment and possible working on the new business.

If I do work under the new business and keep the money in the company's bank account, do I have to report this as income to unemployment? I created the company as an LLC with a single owner and no employees. I don't really expect to make very much doing this, and am really looking for full-time employment, but I don't want to get penalized for trying to get a new business going.

Any money I make at the new business will either be reinvested in it, or kept in a separate corporate bank account. I do not plan on drawing any money out of the corporate account as pay, commission, etc.

Thanks.

Yes, you must report any earnings from self-employment; the question is asked on the claim form.
http://lwd.dol.state.nj.us/labor/forms_pdfs/ui/PR-94.pdf

If I don't pull a salary or commission from the company, is it still considered self-employment?

I won't be claiming any of the corporate income as earnings on my taxes. The company will be paying taxes on the money, not me. All of the money that the company collects will be going into a company bank account that is completely separate from mine.

I am hoping that if this is the case, that I can continue to receive unemployment and not have to claim any money that the company makes. I would like to be able to reinvest any money that is made back into the company.

Thanks

Okay, here's the deal.

If you claim the money and you didn't need to, the UI office will disregard it.

If you don't claim the money and you did need to, the UI office will eventually come back to you for reimbursement and possibly charge you with fraud.

Which scenario do you think is preferable?

Okay, here's the deal.

If you claim the money and you didn't need to, the UI office will disregard it.

If you don't claim the money and you did need to, the UI office will eventually come back to you for reimbursement and possibly charge you with fraud.

Which scenario do you think is preferable?

Yep, and only the state can tell you that for sure.

http://lwd.dol.state.nj.us/labor/forms_pdfs/ui/PR-94.pdf

SPECIAL NOTE: CORPORATE OFFICERS/OWNERS
You will not be considered to be unemployed from any corporation of
which you are a corporate officer or in which you have more than a 5%
equitable or debt interest. As you will not be considered unemployed,
your claim for benefits will be determined INVALID. Should
the corporation permanently cease operations and file for formal
dissolution in accordance with the New Jersey Business Corporation
Act, N.J.S.A. 14A:1-1 et seq.; or file for bankruptcy under Chapter 7
of the U.S. Bankruptcy Code or should your corporate officer/owner
status be terminated, you could be considered unemployed and you
may be eligible for a VALID unemployment claim.

Um, dp3344, this thread is a year old. I'm sure the OP has made a decision by now.