Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I am on ssdi and want to start a llc with my stepson. He…

Customer Question
I am on...

I am on ssdi and want to start a llc with my stepson. He will be the owner and I will only be an investor with only a passive role. Could my s sdi be affected?

Accountant's Assistant: What state are you in? It matters because laws vary by location.

Florida.

Accountant's Assistant: What steps have you taken so far?

Filed the LLC with the state and the FEIN with his social security number.

Accountant's Assistant: Anything else you want the lawyer to know before I connect you?

Can I use my home address as the business address being property tax except for 100 percent disabled vet?

Submitted: 26 days ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 4 minutes by:
5/27/2018
Tax Professional: emc011075, Tax adviser replied 26 days ago
emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3,784
Experience: IRS licensed Enrolled Agent and tax instructor
Verified

Hi. My name is ***** ***** I will be happy to help you.

It depends how you structure your agreement. If you create a LLC with two equal partners, net profit from the partnership will be treated as earned income and will affect your SSDI. If he creates a single member LLC with you listed as investor he will report all income and expenses on his personal return and your SSDI will not be affected.

How do you plan to be compensated for your investment?

Ask Your Own Tax Question
Customer reply replied 26 days ago
With 20 percent of monthly net then 1000 month
Customer reply replied 26 days ago
Can you guys create a business agreememt?
Customer reply replied 26 days ago
No phone call yet please
Customer reply replied 26 days ago
Hello?
Tax Professional: emc011075, Tax adviser replied 26 days ago

No, I do not do business agreements. So let me opt out and let somebody else pick up the question.

Ask Your Own Tax Question
Customer reply replied 26 days ago
Anyone there?
Tax Professional: taxmanrog, Certified Public Accountant (CPA) replied 26 days ago
taxmanrog
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,112
Experience: Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.
Verified

Hi! Different expert here. I've been working in taxation for over 33 years, and have faced this issue before.

This is not an issue that requires legal agreements. The organization document simply needs to state that you are a passive, limited partner, and that your stepson is the general partner. It is treated as a limited partnership, and you have a passive role, you are a passive investor.

As a passive investor, it should have no affect on your SSDI.

If you want to "bullet proof" this position, have your son file a Form 8832, Entity Election form. You should ask that your LLC be treated as a corporation, specifically an S-corporation. With an S-corporation, distributions are made proportionate to your stock ownership. So your share of income, losses, and distributions are made the same as your stock ownership. If you want 20%, then you should own 20% of the shares.

Investment and ownership of corporations does not affect your ability to collect SSDI. You would be safe.

I hope this answers your question. If you have any more, please feel free to ask and I will be happy to answer.

Thanks! Enjoy the holiday tomorrow.

Roger

Ask Your Own Tax Question
Tax Professional: taxmanrog, Certified Public Accountant (CPA) replied 22 days ago

Hi! I have not heard back from you. Do you have any questions? Please let me know.

Thanks!

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask taxmanrog Your Own Question
taxmanrog
taxmanrog
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,112
1,112 Satisfied Customers
Experience: Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.

taxmanrog is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,568 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
To form a holding company of LLCs in various states, which
To form a holding company of LLCs in various states, which state would be the best jurisdiction...my home state, Nevada, delaware, or Wyoming?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,263 satisfied customers
A ROTH IRA can form a LLC based on federal law. I plan to
A ROTH IRA can form a LLC based on federal law. I plan to file in the State of NevadaCan I as the owner of the ROTH act as “Registered Agent”Can I as the owner of the ROTH serve as a Managing MemberCa… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,568 satisfied customers
For a LLC that is organized in 7 states do I file Tax as a
For a LLC that is organized in 7 states do I file Tax as a corporation or do I file Tax as a LLC? Which tax form do I use to file Tax?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
IRS Tax Question: LLC is formed in wife's name, but it is
IRS Tax Question: LLC is formed in wife's name, but it is the husband's business and he does the work. Right now it's single member. Should it be changed to his name? What happens if it converts to an… read more
emc011075
emc011075
Tax adviser
3,784 satisfied customers
Are partnership distributions of land in the final year of a
are partnership distributions of land in the final year of a partnership taxable. The ending capital balance in the partners account is 0 … read more
Cole Parker
Cole Parker
Principal/CPA
Bachelor\u0027s Degree
111 satisfied customers
I received excess cash distribution from a partnership, then
I received excess cash distribution from a partnership, then have a negative capital account. I received a foot note saying I have to restore the negative account back to zero. Should I report the amo… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,045 satisfied customers
New Jersey denied my earned income child tax credit but the
New Jersey denied my earned income child tax credit but the federal gave it to me. Will the state(New Jersey) tell the fed I was denied after the fed all ready gave it to me … read more
Carter McBride
Carter McBride
LLM
1,150 satisfied customers
I need to file a tax form. Its a new LLC with no income, no
I need to file a tax form. Its a new LLC with no income, no business was generated. Is someone avaiable to help me with this now?… read more
Shan-Nel Simmons
Shan-Nel Simmons
Tax Professional/Owner
Master\u0027s Degree
43 satisfied customers
I am doing a partnership and personal return for a man and
I am doing a partnership and personal return for a man and his father. The man is telling me he and his father have agreed for partnership to go from being about 90% owned by father to 90% owned by hi… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
LLC entity is formed in USA (State of NJ) and the only
LLC entity is formed in USA (State of NJ) and the only Member that is listed on Certificate of Formation is a foreign Corporation (in Latvia). How this USA based LLC should file its year end taxes? It… read more
Carter McBride
Carter McBride
LLM
1,150 satisfied customers
If I am converting an LLC taxed as a partnership to be taxed
Quick question. If I am converting an LLC taxed as a partnership to be taxed as an s corp, would the 1065 for the year prior to the switch be considered a final even though I will be using same ein fo… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Partnership is owned 50-50. Cash distribution during the
Partnership is owned 50-50. Cash distribution during the year was made $60,000 to Partner A and $40,000 to partner B. The K1 shows the distributions, but where does the excess $20,000 to Partner A app… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,045 satisfied customers
Can an LLC taxed as a partnership with only husband and wife
can an LLC taxed as a partnership with only husband and wife owners elect to be a joint venture and put everything on schedule C's? If so, do they need to do an 8832?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,568 satisfied customers
Need to walk through local earned income tax form. Did turbo
did turbo tax for federal and state,, trying to understand berkhiemers form for the local earned income,, moved from pa. to florida on july 1, 2017 … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
New state department of taxation has garnish my income for
New state department of taxation has garnish my income for taxes owed … read more
abci168
abci168
Principal
27 satisfied customers
The loss as K-1 of a partnership effecting the Earned Income
the loss as K-1 of a partnership effecting the Earned Income Credit. in other words more the loss is the lesser is Earned Income Credit we get. Is this something they introduces this year of taxes or … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Can an LLC (partnership) pay taxes on income and avoid the
Can an LLC (partnership) pay taxes on income and avoid the partners having to pay the taxes?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,377 satisfied customers
Question regarding taxation of partnership distributions and
Hi, question regarding taxation of partnership distributions and capital gains … read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,512 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x