Income and Social Security

by John
(Washington State)

I retired early from the Boeing Company. After retirement I started my own business which is an LLC with a separate tax ID number. I am currently contracting for the Boeing Company and all the earnings are paid to my LLC name and tax ID number.

I then pay myself a salary from the business. I pay my business taxes monthly.
Now for my question: I will be 62 years old this year and I want to start my early social security benefits at 62. I understand I can only make up to and not more than $14000 a year while I am on the early SS pay. Is this correct?

I am wondering, can I legally continue to operate my LLC and leave my earnings from the LLC in my LLC bank account and the pay myself a sum each month as long as I don’t pay myself more than the $14000 in any calendar year prior to age 65? Is it legal to leave the earnings I make from the LLC, but are not paid to me personally, in the business accounts?

Would I be penalized if I let that earnings just sit in the business account and then draw them out at a later time as long as I keep the payments to myself under $14000 a year while on early SS?

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