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

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.

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.

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.