SSA and LLC's

If you are self-employed, you receive SSI and/or SSDI and your business structure is that of a Limited Liability Company (LLC) - this is an important entry for you.

1. When an LLC member has conveyed property to the LLC, the member does not have a co-ownership or a transferable interest in the property and the property is not a resource attributable to the member.
2. The fact that an LLC may choose to have the entity taxed as a partnership or sole proprietorship does not alter the fact that property conveyed to the LLC is owned by the LLC, not by any of its members.
3. Property owned by an LLC (and thus, not by any of its members) cannot be excluded under the PESS provisions as property that an individual owns and uses in a trade or business.
4. An LLC member's distributional interest in the LLC, like stock in a corporation, cannot be excluded as PESS and is a resource to the extent that it can be converted to cash and used for food or shelter.

So please be aware of the potential consequences of the LLC structure, including loss of Medicaid.


Any questions may be directed to: rsi5@srt.com