461-145-0088 Effective 04/01/15
Corporations and Business Entities; Income and Resources
- The value of stocks or other ownership interest in a corporation is a resource.
- Assets of the corporation essential to the employment of an individual are excluded. For instance, if the corporation owns equipment used by the individual to produce income for the corporation, the equipment is an excluded resource. If an individual must own stock in the corporation as a condition of working for the corporation, the stock is an excluded resource.
- Except as provided in OAR 461-140-0040(2) and section (4) of this rule, income of a corporation is not income of an individual with an ownership interest in the corporation until the income is distributed to the individual.
- In the OSIP, OSIPM, REF, REFM, QMB, and SNAP programs:
- An expenditure by a business entity or corporation that benefits a principal (see subsection (b) of this section) -- such as a car or housing payment -- is considered available when the expenditure is made.
- For purposes of this rule, a "principal" means an individual with significant authority in a business entity or corporation, including a sole proprietor, a self-employed person (see OAR 461-145-0910), a partner in a partnership, a member or manager of a limited liability company, and an officer or principal stockholder of a closely held corporation.
- See OAR 461-145-0130, 461-145-0280, and 461-145-0470 for the treatment of earned in-kind income.
- In the SNAP program:
- Income from business entities and corporations is treated as follows:
- If an individual is actively working in a corporation, the income is treated as earned income.
- If an individual is actively working in an unincorporated business entity, refer to OAR 461-145-0910 to determine if the income is treated as earned or as self-employment.
- If an individual is no longer actively working to produce the income, the income is treated as unearned.
- Income from a limited liability company is treated as follows:
- If an individual is a member or a manager member, the income is treated as self-employment income.
- If an individual is a manager but not a member, the income is treated as earned income.
Stat. Auth.: ORS 411.060, 411.404, 411.816, 412.049
Stats. Implemented: ORS 411.060, 411.404, 411.706, 411.816, 412.049