Creating a new business and SSI

S

Sally17

New Member
Jurisdiction
Florida
My husband and I live in the state of Florida.

We are starting an online business selling digital downloads and eventually tangible merchandise to various online marketplaces. We created an LLC and filed it in the state of Florida and also applied for the applicable FL licenses that are needed.

We created an EIN on the IRS website as a multi-member (2 member) LLC. I'm the owner of it, with it being my primary source of income, and my spouse is listed as a co-owner/member on it. My spouse is disabled and wont be able to contribute work to the business, and he receives SSI (not SSD due to being injured at the age of 19 and not having enough quarters).

We were informed by an accountant that it might be better to have him viewed as an owner/member/shareholder. What would be the option for taxation of the LLC so that it does not effect his SSI and medical insurance coverage? Would it be an S Corp? Can you please help with this?

For reference, we file our taxes as married filing jointly.

We look forward to hearing from you. Thank you so much for your time, knowledge, and stay safe.
 
Sorry, but the LLC income is counted as his income as well at yours (household income). You will have to report the income as it is earned. If you start making enough money at some point he will lose benefits. Hopefully, you'll make enough so that he won't need taxpayer support.

See the following for income guidelines:

SSI Reporting 1-13-11(Final).pdf (ssa.gov)

You should have been talking to your SSA office instead of your accountant. I suggest you make an appointment with your SSA office and go in and figure out how all this works.

There is no way to finagle your business so that it doesn't effect his SSI benefits. S Corp, C Corp. Doesn't matter. As long as the money trickles down to you, it counts against his benefits.

If he's on some sort of Medicaid, that will also be effected. Your Medicaid office can give you the details.
 
adjusterjack said:
Sorry, but the LLC income is counted as his income as well at yours (household income). You will have to report the income as it is earned. If you start making enough money at some point he will lose benefits. Hopefully, you'll make enough so that he won't need taxpayer support.

See the following for income guidelines:

You should have been talking to your SSA office instead of your accountant. I suggest you make an appointment with your SSA office and go in and figure out how all this works.

There is no way to finagle your business so that it doesn't effect his SSI benefits. S Corp, C Corp. Doesn't matter. As long as the money trickles down to you, it counts against his benefits.

If he's on some sort of Medicaid, that will also be effected. Your Medicaid office can give you the details.
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Thank you for your input. In no way are we trying to "finagle" anybody or anything which is why we were trying to reach out for assistance with this. Thank you for your time and we will contact the offices. Even though we will be contacting them, they wont be able to help us with how to file the business (S Corp, etc.).
 
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Perhaps I misread this:

Sally17 said:
What would be the option for taxation of the LLC so that it does not effect his SSI and medical insurance coverage?
Click to expand...

Appears to imply that you want to somehow shield income so it doesn't effect his SSI. I could be wrong.

Sally17 said:
Even though we will be contacting them, they wont be able to help us with how to file the business (S Corp, etc.).
Click to expand...

True, but they will be able to tell you how income to your business, to your household, regardless of the nature of the entity, effects his benefits.
 

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