Question

Can you collect unemployment if you are a sole proprietor

Answer 1

Answer and explanation:

Self-employed individuals such as freelance workers, independent contractors operating as sole proprietors cannot claim state unemployment benefits unless they are registered as an S Corporation where they included themselves as employees of a payroll. In some cases, they could ask for those benefits submitting 1099 tax forms but this does not apply for all states in the U.S.

Unemployment benefits in the U.S. are managed both the federal and state government.

Answer 2

No

Step-by-step explanation:

In most states, in order to be eligible for unemployment benefits an individual must meet certain requirements.

Generally, if you are the sole proprietor of a business, you are not required to pay unemployment insurance tax on yourself. If you do not contribute to your state’s unemployment insurance fund, you are not eligible to receive unemployment benefits in the event your business shuts down. Sole proprietors are required to pay state unemployment insurance tax on employees.