I have been disabled and collecting SSDI since 2012. I had originally been denied SSDI, but following my appeal hearing it was awarded to me.
I would like to invest in (become a 10% member of) a new LLC that is forming. It is a multi-member, manager-managed LLC and not a member-managed LLC. If I join the LLC, I will receive a K-1 from the LLC at the end of the tax year. Before I make my decision, I want to be sure that my interest in the company will not jeopardize my SSDI eligibility.
I am hoping that someone can tell me whether the K-1 income from a non-managing member in a manager-managed LLC counts as SGA income. For me, my share of the profits would be investment income since I would not be participating in the business, just helping to capitalize it. I know that some income (stock/dividend investment income, real estate income, alimony, etc.) doesn't count against SSDI eligibility. But I can't find a reference regarding K-1 income, and whether the SSA will treat a non-participating member of a manager-managed LLC different than a member of a member-managed LLC.
I have checked the Social Security Administration's "Red Book" and found no answer. Calling the SSA only led to them sending me a copy of the Red Book, which didn't address the topic.
Can someone please answer this?