Can You Own a Business While on SSI or SSDI? Disability & Self-Employment Rules Explained

How to Run a Business Without Losing Your Disability Benefits

Introduction: Can You Start a Business While on Disability?

If you receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), you may be wondering:

💼 Can I start a business while receiving disability benefits?

💼 How much can I earn from self-employment without losing SSI or SSDI?

💼 Do business assets count toward SSI’s $2,000 resource limit?

The short answer:

✔ Yes, you can own a business while on SSI or SSDI, but there are strict income and reporting rules.

✔ SSDI allows self-employment but has income limits.

✔ SSI has asset and income limits, but work incentives can help.

In this guide, we’ll cover:

✅ How business ownership affects SSI vs. SSDI differently

✅ How much you can earn while self-employed on disability

✅ How to report business income to SSA

✅ Can business assets affect your SSI eligibility?

✅ How to run a business while keeping your benefits safe

Let’s break it all down!

Can You Own a Business While on SSI or SSDI?

✔ SSDI Recipients – Business Ownership is Allowed, But Income is Limited

• SSDI is based on your work history, not financial need, so you can own a business.

• Earnings from your business must stay below the Substantial Gainful Activity (SGA) limit of $1,550/month in 2024 ($2,590 if blind).

• SSA will evaluate your work activity—if they believe you are engaging in "substantial" work, they may stop your benefits.

💡 If you go over the SGA limit, SSDI benefits may stop, but you may qualify for a Trial Work Period.

⚠️ SSI Recipients – Business Ownership is More Restricted

• SSI is needs-based, so your income and assets must stay within strict limits.

• Any income from your business could reduce your monthly SSI payment.

• If your business assets exceed $2,000 ($3,000 for couples), you may lose SSI eligibility.

💡 The key to keeping SSI while self-employed is using SSA's work incentives (explained below).

How Much Can You Earn While Self-Employed on SSI or SSDI?

✔ SSDI: Self-Employment Income Limits (2024)

• You can earn up to $1,550/month ($2,590 if blind) before SSDI stops.

• If you earn more than $1,050/month, SSA may count this as a Trial Work Month.

• After 9 Trial Work Months, SSA may review your disability status.

💡 If your business income exceeds SGA, SSDI benefits may stop—but you can qualify for Expedited Reinstatement if you stop working again.

⚠️ SSI: Self-Employment Income Limits (2025)

• SSA does NOT count the first $85 of earnings per month.

• After that, SSI benefits are reduced by $1 for every $2 earned.

• If your countable income exceeds $967/month, your SSI may stop.

💡 Example:

If you make $1,085 from your business, SSA ignores the first $85, leaving $1,000 in countable income.

SSA then reduces your SSI by $500 ($1,000 ÷ 2).

✔ If your SSI check is $967/month, you would now receive $467 in SSI plus your business income.

How to Report Business Income to SSA

If you own a business while receiving SSI or SSDI, you must report your earnings to SSA every month.

How to Report Self-Employment Income to SSA

📲 Online: Log into your my Social Security account at SSA.gov

📞 By Phone: Call SSA at 1-800-772-1213

🏢 In Person: Visit your local Social Security office

💡 Failure to report business income can lead to overpayments and potential penalties.

Do Business Assets Count Against SSI’s $2,000 Limit?

✔ Yes, business assets may count toward SSI’s $2,000 asset limit.

✔ However, you may qualify for the Property Essential to Self-Support (PESS) exemption, which allows you to exclude:

• Business equipment

• Inventory

• Real estate used for the business

💡 If you receive SSI, talk to SSA about PESS to keep your business assets from affecting your benefits.

Work Incentive Programs That Help You Run a Business While on Disability

SSA offers work incentives to help disability recipients become self-employed without losing benefits.

1. Trial Work Period (TWP) – SSDI Only

✔ Allows you to test running a business for 9 months while still receiving SSDI.

✔ Only applies if your monthly earnings exceed $1,050.

💡 After 9 months, SSA may review your case to determine continued eligibility.

2. Plan to Achieve Self-Support (PASS) – SSI Only

✔ Allows you to save money for business expenses without counting it toward SSI limits.

✔ Can be used for business start-up costs, inventory, or equipment.

💡 Apply at SSA.gov.

3. 1619(b) Medicaid Protection – SSI Only

✔ If you lose SSI due to self-employment income, you may still keep Medicaid coverage if your income stays below your state’s limit.

💡 Most states allow SSI recipients to earn up to $60,000+ and still keep Medicaid.

How to Start a Business While Keeping Your Benefits Safe

✔ Keep business earnings below the SGA limit (SSDI) or SSI thresholds.

✔ Use work incentives like PASS and PESS to protect assets.

✔ Track all income and expenses carefully.

✔ Report earnings to SSA every month to avoid overpayments.

💡 With proper planning, you can run a business while keeping your disability benefits.

How Purple Helps Manage Business Income & Disability Benefits

💜 Track Your SSI & SSDI Payments – Know when your disability check arrives.

💜 Monitor Business Income – Stay below SSA income limits.

💜 Receive Alerts for SSA Reporting Deadlines – Avoid benefit reductions.

💜 Find Work Incentive Programs – Explore PASS, PESS, and Trial Work Periods.

💡 With Purple, you can manage your income while keeping your disability benefits safe!

FAQs About Owning a Business While on Disability

Can I Own an LLC While on SSI or SSDI?

✔ Yes, but your income and business assets must stay within SSA limits.

Do I Have to Report My Business to SSA?

✔ Yes! All business earnings must be reported to SSA monthly.

Can I Start a Business While on SSDI?

✔ Yes, but if your earnings exceed $1,550/month ($2,590 if blind), SSDI benefits may stop.

Can I Lose SSI If My Business Assets Are Too High?

✔ Yes, but the PESS exemption can protect business-related property.

Conclusion: Yes, You Can Own a Business While on Disability—Here’s How to Keep Your Benefits

✅ SSDI recipients can own a business but must stay under the SGA income limit.

✅ SSI recipients can be self-employed but must manage assets and income carefully.

✅ SSA work incentives (PASS, PESS, 1619b) can help protect your benefits.

✅ Track and report earnings to SSA to avoid overpayments.

✅ Use Purple to manage your income and stay compliant with SSA rules!

💜 Sign Up for Purple to Manage Your Business & Disability Benefits!