Can I collect Social Security at 63 while transferring LLC ownership to spouse?

This is definitely something you need professional guidance on. A good CFP who specializes in retirement planning and small business would be my first stop, then possibly an accountant who understands both SS rules and business taxation. Changing your business structure right before claiming benefits could potentially look like you're trying to avoid the earnings test if you're earning over the annual limit ($21,240 for 2025 if you're under FRA). Remember that at 63, you're taking a 25-30% permanent reduction in benefits from your Full Retirement Age amount. If you continue working at the LLC in any capacity and earn above the annual limit, SS will withhold $1 for every $2 you earn above that limit until you reach your FRA.

honestly ive never heard of anyone doing this before but sounds like ur trying to game the system? no judgment just saying ss people arent dumb they see this stuff all day

You need to speak with a tax attorney who understands both business law and Social Security regulations. This is really about proper business restructuring with retirement implications, not just a financial planning question. The key issues to consider: 1. Substance over form - the SSA and IRS look at the reality of who's doing the work, not just paperwork 2. Material participation rules - if you're still materially participating in the business, your classification matters less than your actual involvement 3. Income timing and characterization - changing from owner to contractor changes how income is reported I did something similar with my S-Corp when I retired, but timing is critical. Document the legitimate business reasons for the change beyond just Social Security benefits.

I went through something SIMILAR with my husband's plumbing business when I started collecting SS at 62. The Social Security office was ABSOLUTELY USELESS when I tried asking these questions!!! Spent 3 DAYS trying to get through on the phone and when I finally did the person couldn't answer ANYTHING about business ownership!!! We ended up paying a CPA who specializes in small businesses and retirement planning about $500 for a consultation. WORTH EVERY PENNY!!!! She helped us restructure things properly so I could collect benefits without issues. BE CAREFUL with this - if you do it wrong they can come after you for overpayments later which is a NIGHTMARE!!!

If you're trying to reach the Social Security office to discuss this, good luck! I tried for weeks to get someone knowledgeable on the phone about my business situation. What finally worked was using Claimyr.com - they got me through to an actual person at SSA in about 15 minutes instead of waiting on hold for hours. They have a video that shows how it works: https://youtu.be/Z-BRbJw3puU For your actual question, I'd suggest talking to both SSA and a tax attorney. In my experience, the rules about self-employment and contracting while collecting benefits are pretty complex.

One more critical point: If you're planning to switch to being a contractor, be aware that the SSA and IRS apply strict tests to determine if you're genuinely an independent contractor versus an employee. Changing just the paperwork but maintaining the same work relationship, schedule, and control factors could trigger reclassification. Since it's a family business, this gets extra scrutiny. And regarding benefit reduction - at 63, you're taking approximately a 25% permanent reduction from your Full Retirement Age benefit. Make sure you've calculated whether the early filing makes financial sense in your specific situation.

My situation wasn't identical but similar - I owned a retail shop with my wife and claimed SS at 64. We met with someone who was both a CPA and a CFP, which was perfect for this kind of complex situation. They helped us restructure ownership in a legitimate way that satisfied both tax requirements and Social Security rules. The key is documenting the business purpose for the change beyond just your SS benefits. In our case, it was part of a broader succession plan as I reduced my hours. We also made sure to properly document the change in my work responsibilities. This is definitely not something to DIY!

just remember whatever u do dont lie to the goverment my uncle tried to do something with his business when he got ss and ended up owing like $18,000 back!

After reading through this thread, I think your best approach is: 1. First, consult with a business attorney who understands SS issues OR a CPA with business restructuring experience 2. Document legitimate business reasons for the change (succession planning, health issues you mentioned) 3. Create clear differences in your new contractor role versus your current owner role 4. Implement changes at least 6 months before filing for benefits to establish a pattern 5. Then use the Claimyr service others mentioned to reach SSA efficiently to confirm your specific situation Keep in mind the earnings test isn't just about W-2 income - net earnings from self-employment count too. Given the complexity here, professional guidance is absolutely worth the investment.

As someone who's been through the Social Security maze, I'd strongly recommend getting everything documented BEFORE you make any changes. The SSA looks very carefully at timing when business structures change right before benefit applications. One thing I haven't seen mentioned - make sure you understand how the spousal benefit calculations might be affected too. If your husband is younger and will be claiming later, there could be strategic considerations about when each of you files that a good retirement planner can help optimize. Also, keep detailed records of your current work split (50/50 as you mentioned) and how that will genuinely change after the transfer. The more documentation you have showing this is a real business evolution rather than just a benefits strategy, the better position you'll be in if questions arise later. The professional consultation fees are definitely worth it to avoid potential overpayment issues down the road!