If you are a business owner and face the risk of shutting down, can you file for state unemployment? The answer will vary by state, but for most states this depends on the entity you choose to run your business.
Let me preface this by saying I am not an expert in state unemployment laws, and the rules vary by state. You may want to reach out to your state unemployment office for specifics.
Most states, including Colorado, have eligibility requirements to receive benefits. First, you must be paid as an employee. Unfortunately, this knocks out anyone operating as a sole proprietor or partnership. If you are an S-corp or C-corp and pay yourself wages, you should be eligible.
Second, the benefit payments are calculated based on wages you paid your self over the last four to five quarters. The more you paid yourself, the more benefit you can expect.
With the recent COVID-19 issues causing unprecedented financial issues, there could be changes or other programs that arise. Either check back here or subscribe to our newsletter for more information.
