Entrepreneurship & Small Business

EI while starting new corporation?

  • Last Updated:
  • Feb 24th, 2018 8:18 am
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[OP]
Newbie
Mar 31, 2016
4 posts

EI while starting new corporation?

Hi there,
Quick question. With my current job (which I plan on keeping), I often work 6-9 months then will be laid off 3-6 months(sometimes longer). I am interested in incorporating an online side business. The problem is I will not be able to pull any money out of this business for at least the first year, possibly more, as I want to reinvest all profits into the business. From my understanding, I can not collect EI if I own my own business. Is there any work around for this? I want to be able to collect EI while I am laid off from my full time job until I can start pulling money out of this business.

Thanks!
3 replies
Penalty Box
Jun 24, 2015
4954 posts
1490 upvotes
0 downvotes
I asked the same question a few days ago and got a mixed bag of results as an answer, but here is a snippet of what someone posted to me, here is the link too:

Go over section 4.6.4:
https://www.canada.ca/en/employment-soc ... tml#a4_6_2

In essence, you have to prove your self employment activities is minor in extent, that you are fully available and looking for a job and that it does not pose any restriction on any potential jobs.
Explore. Dream. Discover. - Mark Twain

Good luck :)
Hi
Member
Feb 15, 2018
344 posts
414 upvotes
The fact that you have started a business does not automatically disqualify you from collecting E.I.

They will assess how much you are making from the business and adjust your E.I. accordingly.

You have a legal obligation to report all earnings to Service Canada or else you could be committing E.I. Fraud. Reinvesting profits is not a good enough excuse to avoid an adjustment of your E.I. entitlement.
Member
Oct 27, 2012
362 posts
292 upvotes
Shwa
Yes you can collect EI. As long as you are actively looking for work from M-F 9-5 (not working on your business), and you declare any money you made, then you should be good. I was laid off a few years ago, and I was making money on my weekend business, but I didnt pay myself and left all the money in the corporation

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