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Can I register an LLC while receiving unemployment benefits in the state of california?
Anonymous2 views2 answers
I may have an opportunity to be contracted for a commission only job and will have to form an LLC. I am currently receiving California unemployment benefits so will the registering of the LLC affect my benefit status although I am not getting any commission for 3 months?
Forming the LLC should not cause you to be disqualified for EDD benefits. More importantly, what is determinative in your circumstance are the answers to the questions which you make in the EDD bi-weekly submission.
If at some point you become unable, unwilling, or too otherwise occupied with a personal business or another job then you will become disqualified for EDD.
Creation of the LLC should not affect your EDD, but self-employment, working for it, may. If you are listed as an officer of the company on the statement of information, filed with the secretary of state after formation, that could result in a determination of self-employment and a cancellation of benefits.