I am collecting unemployment and actively looking for a new, full-time job in my industry. I am considering starting a small, sideline business not related to my career. This would not be a "job," but a business investment. As with any such small business, the revenues I bring in will be offset by the operating expenses of my business on Schedule C. It will most likely take a while before I start to turn a profit in this business, so my net earnings will be negative for the time being.
I have a few questions:
1. If I start this small sideline business, will I lose my unemployment benefits?
2. How do I calculate how much I will lose (i.e., how much I deduct from my unemployment compensation), since my income for this business will be negative for the short term?
3. From a personal unemployment compensation standpoint, should I set this sideline business up as a separate legal entity (e.g., corporation) so that it does not directly produce income until tax time?
4. Similarly, how does owning rental property and filing Schedule E with my tax return impact my personal unemployment compensation?
Any advice would be appreciated. Thanks.
I have a few questions:
1. If I start this small sideline business, will I lose my unemployment benefits?
2. How do I calculate how much I will lose (i.e., how much I deduct from my unemployment compensation), since my income for this business will be negative for the short term?
3. From a personal unemployment compensation standpoint, should I set this sideline business up as a separate legal entity (e.g., corporation) so that it does not directly produce income until tax time?
4. Similarly, how does owning rental property and filing Schedule E with my tax return impact my personal unemployment compensation?
Any advice would be appreciated. Thanks.
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