Can you own a business and be on SSDI?

Can you own or run a small business and collect Social Security disability benefits? But if you still own a business or do some type of work, Social Security will not grant you disability benefits if it considers you to be doing “substantial gainful activity” (SGA).

Will an LLC affect Social Security benefits?

The taxation of Social Security benefits is an income test, not a wealth test. If you collect little in the way of a salary from your S corporation and do not take a dividend from the company, the fact that you own a corporation will not affect your Social Security income.

Does LLC income count against Social Security?

If you have either a sole proprietorship, partnership or a limited liability company (LLC) without a corporate election, all your business income gets passed on to your individual tax return. If you made at least $400, you’ll pay Social Security taxes on your business profits when you file your annual tax return.

What can I own while on SSDI?

Again, for the SSDI program, there is no limit to the amount of assets, cash, or resources you own. In addition, there’s no limit to the amount of income you or your spouse makes.

Does S Corp income affect Social Security disability benefits?

The good news is that you can qualify for SSDI if you have an S-Corp or LLC. However, you must also be very careful to avoid performing “significant services” for the company, or you could jeopardize your SSDI benefits.

Does S Corp pay Social Security tax?

S corporations typically pay payroll taxes – Medicare and Social Security taxes – on any salaries paid to employees. Shareholders distributions don’t incur payroll taxes, but they are subject to income tax.

Can you have a business while on disability?

If you start a business while on disability, the SSA will allow you to work in your business for a certain period without the risk of losing your benefits. The regulations surrounding self-employment and disability benefits can be complex. Violation of any of the requirements could see the SSA terminate your benefits.