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how to start a home based business while collecting social security

by AndreasJ, Window Shopper

  • Created: January 22, 2011, 7:50 pm
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5 comments

I am retired and on social secuirty. I want to start a home based business in NYC, managing independent reps selling online educational products to schools.  What are the tax implications? Do I still need DBA papers. Do I still pay quarterly estimated taxes, etc.

Tags: Discuss Popular Topics, Self Employed & Home Based Business
‹ Starting Art Classes in my home how to start a home based business while collecting social security ›

Halton | Performer | 6/22/2010 - 12:02 am

If you take social security benefits before full retirement age, and you earn income in excess of the annual earnings limit, your social security benefit will be reduced. Keep in mind, investment income does not count toward the annual earnings limit; the only income that counts is earned income - the income you earn by working.   Credit card Application

BizResearcher | Window Shopper | 6/18/2010 - 9:03 am

Starting a business when retired is the same as starting a business at any time in life. You still need to register your business name and entity type. Yes, you will need to pay estimated taxes and, if you are a sole proprietorship or single-person LLC, self-employment taxes as well.

AndreasJ | Window Shopper | 6/18/2010 - 9:03 am

Show Replied Text…
Starting a business when retired is the same as starting a business at any time in life. You still need to register your business name and entity type. Yes, you will need to pay estimated taxes and, if you are a sole proprietorship or single-person LLC, self-employment taxes as well.
Thanks for the response. It's my understanding that after I get social security, there is no limit on how much I earn and I can still recieve payments. how do I know what my tax rate will be and will I have to factor social securilty into the total?

NicoleD | Former Moderator | 6/18/2010 - 9:03 am

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Thanks for the response. It's my understanding that after I get social security, there is no limit on how much I earn and I can still recieve payments. how do I know what my tax rate will be and will I have to factor social securilty into the total?
Hi AndreasJ - I am going to move this discussion to the Loans, Grants, and Taxes board, where it will be more visible to others with experience in tax law.

BizResearcher | Window Shopper | 6/18/2010 - 9:03 am

Show Replied Text…
Thanks for the response. It's my understanding that after I get social security, there is no limit on how much I earn and I can still recieve payments. how do I know what my tax rate will be and will I have to factor social securilty into the total?
The amount you can earn and not have your Social Security affected depends on your age. There is an off-set taken if you are under a certain age and earn more than a specified amount. You can find the information at www.ssa.gov. You may have to pay taxes on your Social Security if you are single and your total income is over $25,000 or married and total income is over $32,000. Again, you can find the information on the SSA web site. Message Edited by BizResearcher on 12-15-2009 11:43 AM