Unemployment and being a partner

[Johnegold]

I was wondering if I became a partner in ownership at a local store would I have to stop claiming unemployment? I'm just wondering since I can't seem to find an answer anywhere. I'm nervous to even get involved and I'm looking to see if anyone has an opinion about it.

[Harold Mansfield]

Only if you cut yourself a paycheck. Technically, you are supposed to report any earnings that you receive in any given week, but there is really no way for them to know unless you are on someone's payroll. If they do find out, they will come after you to repay any benefits that they deem an overage or that you were not entitled to.

I wouldn't be nervous, I'd rather take a chance being a partner in a business than worry about continuing unemployment. You can work the payroll issues out, but I wouldn't pass it up just because of a few hundred dollars a week.
I know, easier said than done when you have nothing..but starting a business is a risk no matter what.

[Steve B]

If you take any income, you are obligated to report it. Unemployment rules vary by state, but I think this one is universal. It's your legal responsibilty to report it, regardless of if they can find out.

The good news is that you will probably lose money for a while if it's a new business, so there wont' be any (or much) income to report. I don't think you should stay away from an opportunity to earn money just to continue to collect unemployment.