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He can still receive passive income as shareholder, he just cannot actively engage in services for remuneration, these are the SSA rules for substantial gainful activity for the self employed, which can be found at 20 CFR 404.157 - http://www.ecfr.gov/cgi-bin/text-idx?SID=d49173d692e1218e666bf65d44d02e5c&mc=true&node=se20.2.404_11575&rgn=div8 The short story of that regulation is that if you are not actively laboring in exchange for $, then it is not substantial gainful activity.
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