Friend wants to form a Limited Liability Corporation ( LLC) for creative writing and music he wrote and recorded.Problems?

Question

He, now age 68,  is   receiving regular social security every month. In the past, up until he turned 66, he was on Social Security Disability for a great many years.Are there any repercussions? Will his monthly social security payments be taken away for reduced? He has yet to do anything to make money, except for his teachers pension ( he left teaching with full disability  at age 43, quite young), and his Social security? payments each month.

Athena · Answer

His pension should not be a problem but his disability might be affected.  
The question is, why LLC for writing and music?  Is this an area he is afraid of being sued in?
With the LLC he will become an employee of the corporation.    This will also not affect his Social Security unless it is being payed only becasue of his disability.

It would be prudent for him to pay for an hour or two of a lawyer's time to make sure everything is set up to his best advantage.  The LLC is cheap and he can do that on line, but it is a good idea to make sure his other assets are protected.

? · Answer

Since he is over 66, there is a higher income limit before he loses some Social Security benefits. But he still has to pay tax on income. In 2015, the limit on your earnings will be $41,880 before you get dunned. At age 66 his SSDI became SS retirement.

David S · Answer

There shouldn't be a problem until he starts making enough money to put his SSDI in jeopardy (if that is actually feasible). Merely creating a LLC won't cause any issues.

Friend wants to form a Limited Liability Corporation ( LLC) for creative writing and music he wrote and recorded.Problems?

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