Federal Disaster Unemployment Assistance

• Find out if you qualify for Federal Disaster Unemployment Assistance. Unemployment insurance is usually provided to people who have lost their jobs through no fault of their own. Most self-employed won't qualify for traditional unemployment insurance. However, you can apply for unemployment if you have been the victim of a major disaster. A disaster would have to be approved by the President of the United States in order to qualify. In 2004 residents of 53 counties were eligible for DUA due to a number of tornadoes and floods that struck Indiana.
  
  

Form a Corporation

• Structure your business as a corporation, in which case you can start paying for unemployment insurance. As long as you are paying for unemployment insurance under an established business, you can file for unemployment compensation.
  
  

You Started Your Business After Being Laid Off

• If you started your business after you were laid off from a previous employer, you may have qualified for unemployment insurance. Your employer was paying unemployment insurance for you while you were working. Depending on how long you are out of work, you may still qualify for unemployment assistance.
  
  

Self-Employment Assistance Program

• Look into the Self-Employment Assistance Program, a federally-sponsored program under which you can collect unemployment benefits while starting a business to stimulate the local economy. To qualify you must receive a letter stating that you are likely to run out of unemployment coverage before finding a job. You will also need to complete a training program approved by the Employment Security Department commissioner.