LLC Rental Property Income and Unemployment Eligibility

[piratess]

My question involves unemployment benefits for the state of: Utah
I became unemployed by no fault of mine, I'm collecting Unemployment Benefits and looking for job. My husband and I purchased rental property and we are forming an LLC to own the property in Nevada. We are filling jointly, and both of us would like to be members of the LLC, however my husband would be the only one involved in the day-to-day operations and he would be declaring the income. Just by the fact that I am listed as a member, will I loose my unemployment benefits? Or does the LLC need to be formed with my husband as a sole member? Is there anything else I should know?
Thank you for your time!

[chyvan]

Weigh the pros and cons of not being part of the LLC. What is it going to cost to add yourself AFTER your benefits run out, or you no longer need them.

If the cost is low enough, just avoid the appearance of self employment, and keep looking for a real job if that's you're ultimate goal anyway.

[Mr. Knowitall]

Merely having an ownership stake in a LLC does not translate into being employed by the LLC. However, there is a difference between earned income and investment income. If your husband is working for the LLC and receiving compensation for his services as an employee, then that's his income. But if you're equal owners, you can't simply shift the investment profits to him.

If you were planning to be employed by the LLC without taking compensation for your work in order to avoid any impact on your unemployment benefits, that would not be proper. You can confirm the policies of Utah's unemployment agency by making a direct inquiry, but if you're doing no work for the LLC and simply sharing a percentage of rent profits I expect they would classify that as unearned income and irrelevant to your eligibility for unemployment.