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Can a Person on SSI or SSDI Start a Business?

Updated: Apr 25

The answer is yes!!! A person who collects payments from the Social Security Administration can do that. If you cannot find a job or keep a job because of your disability and would like to start your own business, then keep reading.

At that point if you keep working up to that amount, you will get a trial period of work and you're considered to be close to getting off of disability benefits. You can read more about 9 month trial month periods on the Social Security's website.

So the question is, should I earn more than $1,350.00 extra every month? In my opinion, it's totally up to you or you can make $970.00 so you won't experience a work trial period.

Working as an employee, (working a job) you should work under 20 hours a week and your earnings should be under $970.00 a month. (Which is the criteria)

What if I'm self-employed and have a based business?

If you have a home based business like myself, selling goods or services, doing hair, or cleaning; etc. the $970.00 is base on your tax return. Once you pay self-employment taxes, you'll deduct your expenses and after that; it's the average of $970.00 over the whole year.

If you start a business, should I start a corporation instead? The benefit of having a corporation is that the money goes into it, then the corporation writes a paycheck to yourself. (You will write your own paycheck) Your paycheck is then your income. So that paycheck is your income.

Here's an example: The corporation is $900.00 a month and the corporation is managing the money including expenses of the business the substantial gainful activity, (SGA) will be $900.00 a month. That $900.00 is below the allowed amount which is $1,350.00.

With starting a business, it will be more beneficial to do that because of the expenses you have to pay for the business. Now be careful if you're running a business and you're the only one running the business because if your business is making a lot of money, you can run the risk of your business of being flagged by the Social Security Administration and social security will contact to your by letter. And also, remember you have to report the income to the Social Security Administration.

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