Owning a business and the IRS.

[GTC1187]

So I have just been approved to receive benefits from social security. I am allowed to make an additional $12,000 per year at a job. Now, I want to start a business and pay myself $12,000 a year in salary. Any other profits will remain in my business bank account.
Will I be fine doing this or will social security cut off my benefits over my business making more than $12,000 a year?
Thanks,
Grant

 

[LdiJ]

So I have just been approved to receive benefits from social security. I am allowed to make an additional $12,000 per year at a job. Now, I want to start a business and pay myself $12,000 a year in salary. Any other profits will remain in my business bank account.
Will I be fine doing this or will social security cut off my benefits over my business making more than $12,000 a year?
Thanks,
Grant

It all depends on how you set up your business and a whole host of other details. It really has little to do with bank accounts.

I would literally have to write and entire treatise on businesses and taxes to make you understand.

Bottom line?...if you think that you can start a business that will make more that 12k in profits (income minus legit business expenses) then you need a sit down consult with a tax professional.

 

[OHRoadwarrior]

So I have just been approved to receive benefits from social security. I am allowed to make an additional $12,000 per year at a job. Now, I want to start a business and pay myself $12,000 a year in salary. Any other profits will remain in my business bank account.
Will I be fine doing this or will social security cut off my benefits over my business making more than $12,000 a year?
Thanks,
Grant

I think you will find the SSA will not fall for your games and will require you repay them for fraudulently collecting SSI.

 

[GTC1187]

I appreciate both replies.
I am not fraudulently collecting benefits, as I am legitimately disabled and cannot work a normal job. So, starting a web-based business from my home is my plan to make the 12K I am allowed to make per year. I am just worried that if my business makes too much money will my benefits be cancelled...
Thanks,
Grant

 

[justalayman]

GTC1187;2936174]I appreciate both replies.
I am not fraudulently collecting benefits, as I am legitimately disabled and cannot work a normal job.

normal job? First, what is a normal job and second; so what? You can earn an income by working a job. That shows you aren't disabled, at least as far as SS is concerned.

.

 

[OHRoadwarrior]

I appreciate both replies.
I am not fraudulently collecting benefits, as I am legitimately disabled and cannot work a normal job. So, starting a web-based business from my home is my plan to make the 12K I am allowed to make per year. I am just worried that if my business makes too much money will my benefits be cancelled...
Thanks,
Grant

If you run/own a business that you cause to intentionally pay out an amount designed to unreport income, so you qualify on paper, you are committing fraud. SSI is designed for those too disabled to earn more than $1000 p/month. You will be committing fraud.

 

[GTC1187]

I am allowed to earn $1,000 a month in addition to the SS benefits I receive. Since working part-time at Walmart is beyond my ability, I want to start a home-based business to earn that $1,000 a month. The reason I am doing this is just to pay all my bills, not to defraud the government. I was under the impression that even a DBA was a legal business entity and as long as I only pay myself $1,000 a month, any other earnings would not be considered unreported income. I asked my question in the first place to see if my business were to make $1,100 a month and I only pay myself $1,000 and leave the extra $100 in my business' account as company money, will I lose my benefits?

 

[GTC1187]

Justalayman, I'm afraid I don't follow.

 

[GTC1187]

I'm thinking if I do a C-Corp I'll be fine, thanks guys!

 

[Antigone*]

So I have just been approved to receive benefits from social security. I am allowed to make an additional $12,000 per year at a job. Now, I want to start a business and pay myself $12,000 a year in salary. Any other profits will remain in my business bank account.
Will I be fine doing this or will social security cut off my benefits over my business making more than $12,000 a year?
Thanks,
Grant

That is not how it works.

 

[GTC1187]

What would be wrong with that?
Thanks,
Grant

 

[Antigone*]

What would be wrong with that?
Thanks,
Grant

Because all the net income will belong to you, even if you leave extra cash in the bank account.

 

[GTC1187]

What if I organize as a corporation?
Thanks,
Grant

 

[Proserpina]

Tell me, what are you going to do with these business profits?

Why do you think extra earnings shouldn't be deducted from your benefits?

 

[GTC1187]

Because if my business goes under I'll still be able to pay my bills with what's in my business accounts, as long as I'm managing my money well and not taking more than $1,000 a month for myself.