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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 112668
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Can a disabled person who receives Social Security Income in

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Can a disabled person who receives Social Security Income in the US receive a grant or a small business loan through an LLC or INC?

MY question is if I own an LLC or INC the business where the income is separate from my personal income... can i own the business and let the income produced just go to the business.....? If i cant run it and I cant sell it..... I dont know what the heck to do. There are some financial obligations now such as utilities, credits etc. Any help would greatly appreciated....


To fill everyone in... My wife and I had a business. She ran the business I drew a disability check for a spinal condition every month for the last 8 years. Recently We divorced. The Judge awarded me the house and our business. Problem is I would love to take over the store and run it myself....but I am just physically unable to sustain employment. I had placed my house and business up for sale. Since the economy has been really sluggish and perhaps for other reasons no one has shown any interest in buying. It is a really great set up. My wife made 6 figure income every year jus on regular customers...I would like to do that as well... but cant.
Anything you receive from the LLC would have to be claimed with SSI as income, including "grants" or "sham loans (loans with no proof it is being repaid)." As an LLC, all of the income of the business is claimed on your taxes and SSI will see that. You can own shares in a C corporation and the C corporation pays taxes, but you could not take any income from that corporation and not report it to SSI which would have an impact on your benefits. If you have children that you can transfer the business to for them to have it in their name, this may be an option for you (just like when your wife ran the business), but other than that anything else is going to have some impact on your SSI benefits (although some income will not eliminate your benefits it can reduce them if it is seen as active income income from work or that you actually had to do something to earn as compared to income from things such as stocks or investments).


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Law Educator, Esq. and 4 other Business Law Specialists are ready to help you
You can put your major daughter (21) on the LLC and you would transfer ownership to her with contract of sale and amending the corporate annual filings and membership articles to reflect the new ownership and because of what you are doing you should use a local attorney to transfer this ownership to make sure there are no mistakes and once you become able to work again you can seek to take the company back into your name if you choose.
Customer: replied 6 years ago.
what about fueling part of my SSD into a Self Direct IRA?
That is not going to help you with whether or not you need to report the income to keep your benefits, you still have to report anything you make from the company for SSI/SSD as income whether or not you direct it to an IRA.

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