Can I collect unemployment even though I'm a business owner?

If you are self employed, filing a Schedule C on your personal tax return, you are not eligible to collect unemployment. If you own a corporation or an "S" corporation and pay your self a W-2 wage, then you are eligible to collect unemployment.  There are also requirements for weeks worked so you can't just pay yourself one paycheck and then attempt to collect unemployment.

If you are an officer of a corporation, or you own more than a 5 percent equitable or debt interest in the corporation, and your unemployment claim is based on wages with the corporation, you will not be considered unemployed during your term of office or ownership. Your claim will not be valid and you will not receive benefits.
If your company has officially dissolved or if you file a chapter 7 petition, you will qualify if you paid for unemployment insurance for yourself.

Unemployment benefits are not collectible unless you are in fact, unemployed.  If you are paying unemployment taxes and the business closes, you could draw benefits, but as an owner not drawing salary, you cannot collect unemployment.  A sole proprietor or an LLC does not pay wages, but if you are paying yourself a salary through an S-Corp or a C-Corp, you pay unemployment benefits and would qualify if you met the minimum time required for drawing salary/paying unemployment.  There may be benefits if you carry unemployment insurance as a sole proprietor.

As a few of these responses have accurately said--as long as the business is "in business" then no, the owner won't be able to collect. You would have to fold the company entirely to be considered eligible, and only then would the W2 wages you paid yourself be taken into consideration.

Other ideas while you're going through slow patches are supplementing your income with a side hustle, or doing a crowd-funding campaign with the superstar customers that would love to see you stay in business!

Some rules of thumb. Not a complete discussion. Discuss with your attorney and accountant/CPA.

A business owner can file for unemployment if:

The Business Owner is an Employee of the Company.

The company pays into the Unemployment Compensation System on behalf of its employees.

The employees receive a W2 at the end of each year documenting deductions from pay and that Unemployment Compensation Taxes were paid to the state on the employees behalf. 

There are rules regarding unemployment compensation about required minimum lengths of employment to qualify and when you last received unemployment.

There may also be rules based on the form of organization a business takes. For example, it may be more difficult for a sole proprietor to claim unemployment than the President or CEO of an LLC or C Corporation as an employee.

There may be rules about self employment.

The Investment Advisor does not provide legal, accounting or tax advice. All information is advisory and analytical only.

In my case as a self-employed individual, its a commission base driven business so I will not be able to collect unemployment base on my effort of not able to bring in a consistent commission. Furthermore, I'm not even paying unemployment taxes to the state unemployment services.  In my kind of business ownership, we will not be able to collect unemployment.

As a business owner, you can qualify for unemployment insurance benefits if you pay yourself a salary or wages in addition to receiving dividends. ... While they have no earnings coming from wages, technically they are not unemployed, and therefore, are unable to collect unemployment benefits.

Laws regarding unemployment insurance vary by state. In some states, even business owners may be paid unemployment compensation. If you are uncertain if you can apply for benefits, contact your local state employment office for more information. State employment offices may go by different names, but the services available are the same. 

If your business is a C Corp or an S Corp and you pay into unemployment and you are listed as an employee or Officer on the payroll tax returns , yes.  This is for Washington State.  Please refer to this link  https://esd.wa.gov/employer-taxes/corporate-officers-FAQ 

The law applies only to corporate officers in corporations. It does not apply to sole proprietors, partnerships, limited liability companies (LLCs), etc. The law also does not apply to governmental and tribal corporations, as well as certain nonprofit corporations. This excludes 501(c) (3) nonprofit corporations, as they are always expected to report their corporate officers to us.

Only those employees with reportable wages are eligible for benefits. As a general principle, in Illinois, any employee who quits their job without a valid ‘excuse’, eg: harassment or discrimination, would not be eligible.  Based on the limited description provided, you would not be eligible. I would suggest that the focus be on a review of the core aspect of the business and strategies to increase the customer base and scope of the business, while at the same time analyzing areas in which expenses can be saved without impacting operations.

Typically, no. It depends on how your business was set up and if you were paying yourself "reasonable wages".  Sit down with your CPA to discuss your options.  Keep in mind that if you're a sole proprietor, you can deduct certain losses for your business. Again, this is a great conversation to have with your CPA professional.