Unemployment and starting own business california California

[exodus7]

hi,

i am on my first federal extension after receiving unemployment for a couple months. my question is whether i can still claim unemployment when starting a business that doesn't make any money. or can i start a company that is incorporating in california but again doesn't make any money.

thanks

[CAIW]

Probably not.
The basis for qualifying for UI is that you are 'ready, willing, and able to accept work if offered'... if you are starting a business of your own, or 'working' with others in the endeavor... you are not available for work. for a wage.

The fact there are no 'earnings' or profit from the activity is not the question. You would still be 'working'...and not at finding a job. You are 'self employed', and by stating you are not, would be a lie and could be fraud.

You can find EDD information here...http://www.edd.ca.gov/Disability/DI_Part-time_Worker

[Keddler]

This is just a theoretical question - Unemployment could cross check the SSNs of people who have registered new businesses with their claimants' SSNs. But do they?

[CAIW]

Originally Posted by Keddler

This is just a theoretical question - Unemployment could cross check the SSNs of people who have registered new businesses with their claimants' SSNs. But do they?

Your records will cross reference automatically within the fed gov't sharing of information system... you are not going to 'hide' from the fed's or state for long.
Neither entity has to consciously make the cross reference...

[Keddler]

Interesting. So registering an LLC, sole proprietorship, corporation, ect would automatically raise a red flag in a queue for someone to investigate?

[CAIW]

Reg. doesn't trigger anything. When you file the tax returns... even if there is a loss or no income at all...there is a ID number...probably your SSN. Eventually it will catch up with you.

This is just a theoretical question -

Why look for problems... when you make application for public assistance...and UI, WC, SDI, SSDI/SSI are viewed public assistance... you are either eligilbe for same, or you are not.

Start trying to hide something and you will be stepping on your own tail... possibly for quite some time.