Collecting unemployment while working at a prop firm

Discussion in 'Professional Trading' started by CasperCRF, Nov 27, 2005.

  1. This is going to make some people laugh but it crossed my mind. My current job is going to be outsource and instead of being down about it, i'm trying to turn it into a positive. I've been looking to make the jump to full time trading and this might be the opportunity for it. I've been told that when you start at a prop firm, you will paper trade for a while and wont trade live until you take and pass your series 7. So, since you have no income when you are first starting out, can you continue to collect unemployment? When are you considered employed by the firm, the day you step foot in there, or when they sponsor you for your series 7?
     
  2. Ebo

    Ebo

    The day they cut you a check.
     
  3. My understanding is that you are never technically employed
    at most all prop firms (i.e., have employee status). A prop
    trader has independent contractor status.
     
  4. omniscient

    omniscient Guest

    agreed, when you first receive income. technically, whether you are an actual employee or contractor won't matter (unless your firm pays in cash :D).

    hth

    take care :)

    omni

    BTW: not sure what firm you are going with, but you may be able to work out something with them for delayed payment if it is financially beneficial to continue receiving unemployment. again, since i don't have any data on your state or your firm's payout structure and so forth, you will have a better perspective.
     
  5. Ebo

    Ebo

    If they write you a check, it gets reported on a 1099.
    'probably not a great idea to collect unemployment as well.

    Now a delay of the check, or keeping the funds in the LLC. while collecting UE INS. might not be an blatant crime!
     
  6. maxpi

    maxpi

    In California, if you get a check it only gets subtracted from that period's unemployment check. It does not, by itself, disqualify you from unemployment. You might be able to continue to collect the unemployment if your checks are infrequent or not that big.
     
  7. Dont even bother telling Unemployment about your prop trading job it will just cause problems getting unemployment....just keep collecting it until you get your first check from trading. Worst case senerio, you have to pay the money back.
     
  8. Ebo

    Ebo

    Great advice!
    I suppose it's ok to lie to them.

    Why not avoid having to pay back the entire 6 months PLUS interest and penalty?

    Just DO NOT collect UE the week you get the check.
    and just file the following week.
     
  9. Are you training for a job? Whats wrong with that? Isn't that what the unemployed are supposed to do in America?

    Michael B.

     
  10. Hey Caspre,

    Hows it going?

    I would figure you can still collect U/E as long as you don't tell them about prop trading.

    What prop shop you looking to go too?
     
    #10     Dec 7, 2005