Q: How to answer UI application question about being involved in a Corporation in past 18 months
California Unemployment application form includes a question asking the applicant, "Are you now, or have you been in the last 18 months an officer of a corporation or union or the sole or major stockholder of a corporation?"
There is a single-member LLC registered under my name in the last 18 months, but this LLC has never been engaged in any business activity at all (no customers, no revenue, no taxes).
My UI filing is based on a W2 employment with an employer, and has nothing to do with this LLC.
Would I be considered an officer of a corporation (that the UI application is asking)?
Thanks
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A:
If you have a single-member LLC that has not engaged in any business activities, it is generally not considered the same as being an officer of a corporation. Since your LLC has had no customers, revenue, or tax activities, it remains inactive and separate from your W2 employment.
The unemployment insurance application question is aimed at identifying individuals who have significant control or ownership in active businesses, which could affect eligibility for benefits. Being the sole member of an inactive LLC typically does not classify you as an officer or major stockholder in this context.
To ensure your application is accurate, you can answer "No" to the question about being an officer or major stockholder, given that your LLC is inactive. However, if you have any doubts, contacting the California Employment Development Department for clarification can provide additional peace of mind.
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