461-145-0089    Effective 07/08/20
Corporations and Other Business Entities; Income and Resources, Not Self-Employment; OSIP, OSIPM, QMB

Retroactively effective July 6, 2020, in the OSIP, OSIPM, and QMB programs:

1. For purposes of this rule:
   1. "Business entity" includes a sole proprietorship, a partnership, and an unincorporated limited liability company.

   2. "Principal" means an individual with significant authority in and responsibility for the success or failure of a corporation or "business entity" (see subsection (a) of this section), including:
      1. A sole proprietor.

      2. A general partner in a partnership.

      3. A member or manager of a limited liability company.

      4. An officer or stockholder with controlling shares in a closely-held corporation.

2. This rule applies to an individual who has an ownership interest in:
   1. A corporation; or

   2. A business entity, but is not considered self-employed (see OAR 461-145-0915).

3. For an individual with an ownership interest in and actively working for a corporation:
   1. Unless the individual meets the specific criteria for self-employment in OAR 461-145-0915, the individual is not considered self-employed, regardless of whether or not the individual is a principal (see subsection (1)(b) of this rule).  Income from actively working for the corporation is counted as earned income as provided in OAR 461-145-0130.

   2. Dividends or profits are counted as unearned income.

   3. Income not paid to an individual but retained by the corporation is not considered income of the individual.

   4. Property and resources owned by the corporation are excluded.

   5. Except in the QMB-BAS, QMB-SMB, and QMB-SMF programs, if maintaining an ownership interest in a corporation is required for employment, the equity value (see OAR 461-001-0000) of the ownership interest is excluded; otherwise it is counted as provided in subsection (6)(a) of this rule.

   6. A non-business expenditure – including, but not limited to, a car or housing payment – paid by the corporation that benefits the individual is treated as earned income of the individual.

4. If the individual has an ownership interest in a business entity, is considered a principal, and is actively working in the business entity, the individual is considered self-employed (see OAR 461-145-0915).

5. If the individual has an ownership interest in a business entity, is not considered a principal, and is actively working in the business entity:
   1. The individual’s income, not including dividends or profits from the business entity, is counted as earned income as provided in OAR 461-145-0130.

   2. Dividends or profits are treated as unearned income.

   3. Except in the QMB-BAS, QMB-SMB, and QMB-SMF programs, if maintaining an ownership in the business entity is required for employment, the equity value of the ownership interest is excluded; otherwise it is counted as provided in subsection (6)(a) of this rule.

   4. A non-business expenditure – including, but not limited to, a car or housing payment – paid by a business entity that benefits the individual is counted as earned income of the individual.

6. If the individual has an ownership interest in a corporation or business entity, but is not actively working in the corporation or business entity:
   1. Except in the QMB-BAS, QMB-SMB, and QMB-SMF programs, and except as provided in OAR 461-140-0020, the equity value of an ownership interest in a corporation or business entity, other than stock in the corporation, is counted as a resource. See OAR 461-145-0520 for how to treat stock.

   2. Except as provided in OAR 461-140-0040, income of the individual from a corporation or business entity is counted as unearned income of the individual.

   3. A non-business expenditure – including, but not limited to, a car or housing payment – paid by a corporation or business entity that benefits the individual is counted as unearned income of the individual.

Statutory/Other Authority: ORS 409.050, 411.060, 411.070, 411.083, 411.404, 411.706, 413.085, 414.685
Statutes/Other Implemented: ORS 409.010, 409.050, 411.060, 411.070, 411.083, 411.404, 411.706, 413.085, 414.685, 414.839

Previous Rules