starting a business while collecting unemployment insurance?

Question

i've recently been laid off but have always wanted to start my own business. my question is, does anyone know the rules in RI about obtaining a sales permit and getting a federal tax id? will these make me "employed" and not eligible for benefits even though i will not be seeing any income in the near future?

if no one knows the answers, does anyone know who i can contact to find out more information?

Answer 1

Each state has different unemployment and tax law so I would recommend calling these two state agencies and innocently inquire about what you need to know. I would also get the printed document as well, just in case the folk aren't clear what they are telling you on the phone. You can probably download the documents from the agency's web site.

Answer 2

Im in Australia so the rules are very different from here to the US (Im assuming thats where you are) we have a program here for unemployed people to start their own businesses and the government will help you start up and with payments for a period of time - ring your social security or who ever you get the unemployment payments from and find out if there is such a program where you are.

Answer 3

Be very careful about doing that as anything you do in the way of self employment even though you are not making any money they will consider you employed and suspend your benefits. That's the way it works in NJ and I presume all other states as well.

Answer 4

Until you get income (revenue), and are looking for work, you can continue to collect. As soon as you have revenue however, like at $1, you have to declare this for your unemployment claims. Good luck with the new business.

Answer 5

I believe you have to be ready willing and available to work to collect.

try contacting employment office to see if there are any special programs you could get in volved with