Owning a business and the IRS.

[tranquility]

However, when is is the sole owner of a corporation, his means tests are going to include any cash sitting in the bank of the corporation, because any valuation that Social Security puts on those shares will be based, in great part, on the assets of the corporation, particularly the cash.

The means test is not the same as the income test.

 

[LdiJ]

The means test is not the same as the income test.

I know that. In fact, I think I was clear that they were separate issues.

 

[tranquility]

We would more properly use the term countable asset, but we're on the same page.

You are the one who mentioned "hiding" income. (Even though there are pages of rules of what "income" means in a c-corp situation.) You also mentioned "fraud" too.

I don't see any hiding in the plan and I don't see any fraud. The closest would be to have a low par value on the stock. Does any entity in the world care about par value?

The SSA is not befuddled by this situation where a person who is disabled wants to start a business. The benefits of a c-corp (Because of the detailed rules.) may be more beneficial to the OP than any other entity and is an acceptably recommended path for people who create a profitable business.

 

[LdiJ]

We would more properly use the term countable asset, but we're on the same page.

You are the one who mentioned "hiding" income. (Even though there are pages of rules of what "income" means in a c-corp situation.) You also mentioned "fraud" too.

I don't see any hiding in the plan and I don't see any fraud. The closest would be to have a low par value on the stock. Does any entity in the world care about par value?

The SSA is not befuddled by this situation where a person who is disabled wants to start a business. The benefits of a c-corp (Because of the detailed rules.) may be more beneficial to the OP than any other entity and is an acceptably recommended path for people who create a profitable business.

I misspoke when I said hiding income. However, I was also trying to make the OP understand that this will not accomplish what he/she wants it to accomplish, and could potentially cause higher overall tax to be paid on the money in the long term.

 

[tranquility]

I agree. It seems also, that some of those rules say most any payment (like expense reimbursement) are income and not just dividends.

I only picked on your posts as they were most recent. There was a lot more calls of fraud in the early part of the thread.

 

[GTC1187]

I'll hold my tongue out of respect for tranquility, but I would really appreciate if you could point out to me and anybody else whom has read this thread where I "hurled insults" at any time before my last post, I would really appreciate it.
The way I see it, I asked an innocent question and was torn to pieces immediately by a bunch of sharks jumping on a bandwagon of immaturity and hatred certainly unbecoming of anyone that has earned a J.D. in this culture or any other.
And before you bring up the possible fact that a law degree may not be called a J.D. in other countries, let me point out that I'm fully aware of this and you need not "hurl" this back into my face several times for me to understand what you're saying. Especially when mixed with slanderous accusations of me attempting to defraud the United States government!

Thanks,
Grant

 

[OHRoadwarrior]

You approached your last post, in the same misguided way you are attempting to defraud the SSA. If you read the TOS, you will discover there is no requirement to be an attorney to assist here.

 

[GTC1187]

To be brutally honest, I'd say it's a safe bet that that is assumed at this point.

Thanks.