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One last tip - consider setting up a separate business bank account even before you start earning money. Makes it much easier to track business income and expenses for both Washington ESD reporting and taxes.
I went through this exact situation last year! Filed my LLC while collecting unemployment and had zero issues. The most important thing is understanding that Washington ESD only cares about actual work performed and income earned - not just the business formation itself. I spent about 2 months doing all the setup work (LLC filing, EIN, business bank account, basic website) while still collecting full benefits. Once I started actively pursuing clients and doing actual consulting work, that's when I began reporting it on my weekly claims. The transition was smooth and I was able to gradually reduce my unemployment benefits as my business income increased. Just make sure you keep detailed records of when you transition from "business setup" to "active business operations" in case they ever ask questions.
This is exactly the kind of detailed experience I was hoping to hear about! The distinction between business setup vs active operations makes so much sense. I'm planning to do the same gradual transition approach once I'm ready to start taking on clients. Did you find that Washington ESD was pretty understanding about the whole process when you were reporting your consulting income?
Thanks everyone for the detailed explanations. I had no idea there were so many economic factors involved. It makes sense now why some unemployment is actually necessary for a healthy economy, even though it's tough for individuals going through it.
Hope your Washington ESD situation gets resolved soon! The economic theory is interesting but doesn't make the personal experience any less stressful.
This is such a helpful discussion! As someone currently navigating the Washington ESD system myself, I appreciate learning about the economic theory behind unemployment rates. It's fascinating that what seems counterintuitive - that some unemployment is actually good - makes perfect sense when you break down frictional, structural, and seasonal unemployment. I never realized that 0% unemployment could indicate an overheated economy or lack of job mobility. While I'm still frustrated waiting for my adjudication to complete, understanding that unemployment benefits serve as a bridge during these natural economic transitions makes the system feel more purposeful rather than just bureaucratic hassle.
btw when u do ur weekly claims make sure u check ur eServices inbox every week too. sometimes they send u important messages there and dont email u about them. my friend almost got her benefits cancelled cuz she missed some questionnaire they sent
Great job applying, Mei! You're doing exactly the right thing. One more tip from my experience - keep detailed records of everything. I created a simple spreadsheet tracking my weekly hours worked, gross earnings, and benefit payments. It saved me when ESD questioned something months later. Also, if your employer ever gives you a written notice about potential hour increases or changes, save those emails/documents too. They can be helpful if you need to request standby status later or if there are any disputes. The $435 weekly benefit should definitely help bridge the gap while you're dealing with reduced hours!
One last thing - if you're approved for SNAP while on unemployment, you might also qualify for reduced-cost utilities through LIHEAP. It's worth looking into all the assistance programs available, not just food and unemployment.
This thread is incredibly helpful! I'm in a similar situation and have been hesitant to apply for SNAP because I wasn't sure how it would interact with my unemployment benefits. Reading everyone's experiences has given me the confidence to move forward with the application. It's reassuring to know that so many people have successfully received both types of assistance without any issues. Thank you all for sharing your knowledge and experiences - it really makes a difference for those of us navigating these systems for the first time.
AstroAdventurer
Thanks everyone for all the info in this thread. I feel much more confident about applying for Medicaid now. It's nice to know other people have been through the same situation successfully.
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Malik Thomas
•Agreed! This community is really helpful. I'm going to start my Medicaid application this week.
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Mei Liu
•Good luck with your application! Hope everything works out smoothly for you.
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Oliver Schulz
One more thing to consider - if you have any existing prescriptions, make sure to ask about formulary coverage when you're choosing your Medicaid managed care plan. Different plans may cover different medications, so if you take something regularly, you'll want to make sure it's covered under whichever plan you select. I learned this the hard way when I switched plans and had to jump through hoops to get my medication approved.
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