Did You Know You Could Collect Unemployment Compensation While Starting Your Solo Practice?

Many states are now offering continued unemployment benefits while you start up your own business.  This means for those who have been laid off permanently and eligible for unemployment, you can now direct your energies towards starting your solo practice while still receiving your unemployment checks.

To receive benefits, you must be able and available to work and actively seeking a job. In many states, you must also accept a job if it is offered to you. This means that, in general, you cannot receive unemployment benefits for starting a business.

However some states (Delaware, Maine, Maryland, New Jersey, New York, Oregon and Pennsylvania) have “Self-Employment Assistance” programs.

To qualify, you must be:

  1. eligible to receive unemployment insurance benefits;
  2. permanently laid off from a previous job;
  3. likely to exhaust benefits; and
  4. participating full-time in self-employment activities. Each state has its own requirements.
To find out if you qualify, contact your state’s unemployment office.
(H/T to Rachel Rodgers who also tells us in New York and New Jersey you can even get a free business management course, too!)
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