- The first 30 days at a glance
- Week one: file your unemployment claim
- Week two: sort your health cover before you need it
- Weeks three and four: a new job or a business of your own?
- If you start trading: the tax set-up nobody mentions
- Your step-by-step list after a layoff
- My verdict
- Frequently asked questions
When you get laid off in the US, do three things in this order: file for unemployment in the state where you worked, sort your health cover, and only then decide whether to job hunt or start something of your own. There's no federal unemployment programme, so each state runs its own insurance, sets its own rules and pays its own benefits, as of October 2026.
Here's what people miss. You generally file in the state where you worked, not the state where you live. If you worked remotely or for an employer outside your home state, your home state's unemployment office can help you file a claim in a different state. And COBRA isn't automatically the safe choice for health cover. You pay the full premium yourself, including the share your employer used to cover, plus a small admin fee. A plan through HealthCare.gov is priced on your household income for the year, not on whether you've got a job, so it's often worth checking first.
The first 30 days at a glance
| What to sort | What the official guidance says | Where it comes from |
|---|---|---|
| Unemployment insurance | Run by your state; you generally file where you worked | usa.gov |
| Health cover, route one | A HealthCare.gov plan, Medicaid or CHIP, with savings based on household income | HealthCare.gov |
| Health cover, route two | COBRA, if your old employer offers it: the full premium plus a small admin fee | HealthCare.gov |
| If you start trading | Estimated tax if you expect to owe $1,000 or more | IRS |
Week one: file your unemployment claim
Unemployment insurance pays out if you lose your job through no fault of your own, and your state decides who's eligible. Many states look at three things: that you earned at least a set amount in the last 12 to 24 months, that you worked consistently over that period, and that you're looking for a new job. Amounts and the number of weeks you can claim vary from state to state, so your state's unemployment office is the only place that can give you your figures.
File quickly, then keep an eye on your claim. usa.gov warns that scammers file unemployment claims using other people's names and personal details. If anything about your claim looks wrong, or you get paperwork for a claim you never made, contact your state's unemployment office straight away.
Week two: sort your health cover before you need it
This is the decision most people rush. You've usually got two routes, and they're priced in completely different ways.
- A plan through HealthCare.gov. Savings and eligibility depend on your household size and your estimated income for the year you need cover, not on your job status. One application tells you whether you qualify for a plan there, for Medicaid or for CHIP.
- COBRA continuation coverage. Your former employer may offer it. You pay all of the premium, including the share your employer used to pay, plus a small administrative fee.
If your income for the year drops because your salary has stopped, the HealthCare.gov route can come out cheaper, so I'd fill in that application before you sign anything for COBRA. If you don't qualify for savings, HealthCare.gov says you may be able to take a Catastrophic plan and pair it with a Health Savings Account. And if you can't afford a plan at all, a nearby community health centre offers low-cost care.
Weeks three and four: a new job or a business of your own?
Once your claim is in and your cover is sorted, you've got room to think. Don't let anyone rush you into launching something in week one. Work out your runway first: what's coming in, what's going out, and how long you can comfortably keep going.
Then be honest about what you want. Plenty of people use a layoff as the push to go freelance or start consulting, and plenty of others want a steady salary back. Both are fine choices. Many states expect you to be looking for a new job while you claim, so check how your state treats self-employment before you send your first invoice.
If you start trading: the tax set-up nobody mentions
In the US you become a sole proprietor automatically the moment you do business and don't register as anything else. That's easy, but the SBA points out that your business and personal assets aren't separate, so you can be held personally liable for business debts.
Tax changes too. As a self-employed person you generally file an annual return, pay estimated tax every quarter and pay self-employment tax, which covers Social Security and Medicare. The IRS says sole proprietors generally have to make estimated payments if they expect to owe $1,000 or more when they file. That catches out a lot of people in their first year, because nobody's taking tax off their invoices.
Want AI doing the heavy lifting in your marketing?
I build the systems that handle the boring 80 percent, so you get your week back. Done properly, with the human kept in.
If consulting is where you're leaning, my guide to starting an AI consulting side business walks through testing an idea while you keep your options open.
Your step-by-step list after a layoff
- File for unemployment in the state where you worked, and ask your home state's office for help if you worked remotely or out of state.
- Watch your claim for any sign of identity theft.
- Fill in one HealthCare.gov application to see whether you qualify for a plan, Medicaid or CHIP.
- Compare that with your COBRA offer, if you have one, remembering you'll pay the full premium plus a fee.
- Check your last pay is right. My guide to your final paycheck covers what to look for.
- Work out your runway before you commit to a business.
- If you start trading, choose a structure and plan for quarterly estimated tax.
My verdict
I've spent 23 years in marketing, and if there's one thing I'd tell a friend in this spot, it's not to skip the boring part. I'd file your claim and sort your health cover before anything else, because both protect you while you think. I'd skip the urge to launch a business in week one. Give yourself a few weeks, then decide with a clear head.
If you do decide to build something of your own, AI can take a lot of the grunt work off your plate, and that's where I help. I run AI training and workshops for teams, and help businesses with AI enablement, AI automation and GEO, which is about getting your business seen and cited in AI answers. Most of that work is with SaaS marketing teams, telecom companies and small businesses. Here's how we can work together.
Frequently asked questions
Should I file for unemployment in my home state or the state I worked in?
In most cases you file in the state where you worked, not the state where you live. If you worked remotely or outside your home state, contact your home state's unemployment office for help filing in a different state.
Is there a federal unemployment programme?
No. Each state runs its own unemployment insurance, sets its own eligibility rules and pays its own benefits.
Is COBRA cheaper than a HealthCare.gov plan?
Often not. With COBRA you pay the full premium, including your old employer's share, plus a small admin fee. HealthCare.gov savings depend on household income for the year, not on whether you've got a job.
What if I can't afford any health plan?
HealthCare.gov points people to a nearby community health centre, which offers low-cost care.
Will I need to pay estimated tax if I start freelancing?
Generally yes, if you expect to owe $1,000 or more when you file, as of October 2026. Self-employed people usually pay estimated tax every quarter.
