Can you own a business and collect Social Security Disability? This is a question that often arises among individuals who are considering starting their own venture while also relying on Social Security Disability Insurance (SSDI) benefits. The answer to this question is not straightforward and depends on various factors, including the nature of the business, the individual’s disability, and the specific regulations set forth by the Social Security Administration (SSA). In this article, we will explore the complexities surrounding this issue and provide guidance for those who are navigating this challenging situation.
The first thing to understand is that SSDI benefits are designed to provide financial support to individuals who are unable to work due to a qualifying disability. The SSA defines disability as a medical condition that is expected to last at least one year or result in death. When it comes to owning a business while collecting SSDI, the SSA has specific rules and guidelines that must be followed.
One of the primary concerns for the SSA is the individual’s ability to earn a substantial amount of money. According to the SSA, if an individual earns more than a certain amount, known as the Substantial Gainful Activity (SGA) limit, they may no longer be eligible for SSDI benefits. For 2021, the SGA limit is $1,310 per month for individuals who are not blind and $2,190 per month for individuals who are blind.
However, owning a business does not necessarily mean that an individual will exceed the SGA limit. The key factor is the nature of the business and the individual’s involvement in its operations. If the business is considered a “self-employment” venture and the individual is actively working in the business, they may still be eligible for SSDI benefits, as long as their income does not exceed the SGA limit.
There are several types of businesses that may be considered for SSDI eligibility, including:
1. A sole proprietorship: This is a business owned and operated by one individual. As long as the individual’s income from the business does not exceed the SGA limit, they may remain eligible for SSDI benefits.
2. A partnership: If an individual is a partner in a business and their share of the profits does not exceed the SGA limit, they may still be eligible for SSDI benefits.
3. A limited liability company (LLC): An individual who owns an LLC and does not receive a salary or distributions from the company may still be eligible for SSDI benefits, as long as their income from the business does not exceed the SGA limit.
It is important to note that the SSA may conduct a review of an individual’s case to determine their eligibility for SSDI benefits while owning a business. During this review, the SSA will assess the individual’s income, the nature of the business, and their level of involvement in its operations. If the SSA determines that the individual’s income exceeds the SGA limit or that they are not genuinely disabled, their SSDI benefits may be suspended or terminated.
In conclusion, owning a business and collecting Social Security Disability is possible, but it requires careful consideration of the SSA’s rules and guidelines. Individuals who are considering this option should consult with a qualified SSDI attorney or a representative from the SSA to ensure they are in compliance with the regulations and to maximize their chances of maintaining their SSDI benefits.
