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On the one hand, high unemployment rates may lead to start-up activity of self-employed individuals (the refugee effect). On the other hand, higher rates of self-employment may indicate increased entrepreneurial activity reducing unemployment in subsequent periods (the entrepreneurial effect).
Yes, an LLC owner may be eligible to collect unemployment benefits if they meet certain criteria. In general, to qualify for unemployment benefits, an LLC owner must have been an employee of the company and paid into the state unemployment insurance system.
If you dream of starting your own business and qualify for the SEAP, you can have the financial support you need to pay your bills while you work on that dream! You must receive a written acceptance into the SEAP before you can start your own business while collecting benefits.
The bottom line: A self-employed person can receive unemployment compensation only if that individual has elected to participate in the unemployment insurance program, has filed necessary reports with the state, and has paid required amounts to the state unemployment insurance fund.
Self-employed professionals may be eligible for a few unemployment programs, including disaster unemployment and assistance and Self-Employment Assistance (SEA).
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Unemployment benefits are now available to Americans who have lost work because of the COVID-19 crisisincluding independent professionals, contractors, and other self-employed workers. If you apply for unemployment for the self-employed, get more information about the CARES Act.

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