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Ask HN: Can I start a startup while on unemployment (US based)

8 points| tmh79 | 5 years ago

I'm employed right now in a well paying job, and I have a small side project that I have been working on with a friend that makes a modest amount of money, of which I have not paid myself any as of yet. If I were to get laid off or fired from my full time job, would it be legally possible to take unemployment for a while while to help me bootstrap the startup?

2 comments

duxup|5 years ago

Unemployment rules vary state to state so start looking those up.

Note that generally in most states you have to be looking for a new job when receiving unemployment... so keep tose rules in mind.

But you can still use your own time to start a business, although any income from that may impact benefits.

codegeek|5 years ago

In some states like NJ for example, you can claim unemployment even if you are working as long as you can show that your hours or income was reduced significantly usually by the same employer. Find out in your state.