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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Social Security
Satisfied Customers: 15588
Experience:  Licensed CPA, CMA, CFE, CGMA M.Accy Also Teach Accounting courses at Master's Level
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Hello, Im not sure my question would fall into this category

Resolved Question:

Hello,
Im not sure my question would fall into this category or the personal fiance category.
I am on SSDI and am starting up some investments for myself. I understand SSDI does not look at investments when figuring income(only earned income from working). I would like to know if I can still use a business like a corp or llc to set up an investment account.
And also what type of bank account I should use ie: small business checking account?(or does it matter?
I dont really want to use my personal account with my name but rather a non descript business name like "CCEEHH" LLC or similar. Do these things matter at all to the IRS and/or social security? I dont want them to think my income will be coming from any work earnings but rather investments.

Thanks
Submitted: 1 year ago.
Category: Social Security
Expert:  Megan C replied 1 year ago.
I realize you have a question about social security. My goal is to help you better understand your options.

Thank you for your question, and thanks for using JustAnswer.com. You are correct - social security will not count your investment earnings as income when applying the earnings test. You could theoretically earn $1 million a year on your investments, and still draw an SSDI check.

You can also start an LLC if you wish. If you are the only member of the LLC, when it comes time for taxes you will ignore the LLC and fill out the activity from your LLC on your taxes just as if you earned the income under your name. This is because an LLC is disregarded for tax purposes when there is only one member.

In any rate, whether you earn the income in your own name or have an LLC set up for the investment, the earnings will be pegged as investment earnings and you will not impact your social security benefits.

Please let me know if you need further assistance. If not, please rate my response as "excellent" so that I may receive credit for assisting you today. Thanks again for using JustAnswer.com.
Customer: replied 1 year ago.

OK, thank you for that info. And what type of bank account should I have my investments from fidelity flowing into? A small business acct under the llc?

Expert:  Megan C replied 1 year ago.
If you have your investments in an LLC, then you will need to open a bank account in the name of the LLC for your funds.

Please let me know if you need anything addtional. If not, please rate as "excellent" so that I may receive credit for assisting you today. Thanks again.
Megan C, Certified Public Accountant (CPA)
Category: Social Security
Satisfied Customers: 15588
Experience: Licensed CPA, CMA, CFE, CGMA M.Accy Also Teach Accounting courses at Master's Level
Megan C and other Social Security Specialists are ready to help you

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Licensed CPA, CMA, CFE, CGMA M.Accy Also Teach Accounting courses at Master's Level