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Would owning my own LLC qualify me as independent?

iluvsteak123iluvsteak123 1 replies1 discussions Forum Champion
As the title describes, if I owned an LLC, would I be considered an independent student with respect to financial aid?
15 replies
Post edited by iluvsteak123 on
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Replies to: Would owning my own LLC qualify me as independent?

  • purpleacornpurpleacorn 23 replies2 discussions New Member
    No. For FAFSA purposes, you are independent only if the answer to one of the following questions is true:
    Were you born before January 1, 1990?
    As of today are you married?
    At the beginning of the 2013-2014 school year, will you be working on a master's or doctorate program (such as an MA, MBA, MD, JD, PhD, EdD, or graduate certificate, etc.)?
    Are you currently serving on active duty in the U.S. Armed Forces for purposes other than training?
    Are you a veteran of the U.S. Armed Forces?
    Do you have children who will receive more than half of their support from you between July 1, 2013 and June 30, 2014?
    Do you have dependents (other than your children or spouse) who live with you and who receive more than half of their support from you, now and through June 30, 2014?
    At any time since you turned age 13, were both your parents deceased, were you in foster care or were you a dependent or ward of the court?
    As determined by a court in your state of legal residence, are you or were you an emancipated minor?
    As determined by a court in your state of legal residence, are you or were you in legal guardianship?
    At any time on or after July 1, 2012, did your high school or school district homeless liaison determine that you were an unaccompanied youth who was homeless?
    At any time on or after July 1, 2012, did the director of an emergency shelter or transitional housing program funded by the U.S. Department of Housing and Urban Development determine that you were an unaccompanied youth who was homeless?
    At any time on or after July 1, 2012, did the director of a runaway or homeless youth basic center or transitional living program determine that you were an unaccompanied youth who was homeless or were self-supporting and at risk of being homeless?

    Will I need my parents’ information?
    edited May 2013
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  • iluvsteak123iluvsteak123 1 replies1 discussions Forum Champion
    Yes, but I would not be considered a dependent on my parent's taxes. They would lose the tax benefit of having me as a dependent. Could somebody with greater experience tell me what they think?
    edited May 2013
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  • momofthreeboysmomofthreeboys 55 replies2 discussions Junior Member
    Federal income tax status and student aid are two separate things. Students could be independent of their parents and not claimed on the parents income taxes, but for the purposes of college financial aid they are considered dependent unless they meet one of the criteria listed in the earlier post.
    edited May 2013
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  • BobWallaceBobWallace 64 replies2 discussions New Member
    Dependency for taxes and dependency for financial aid are separate determinations.
    edited May 2013
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  • Iron MaidenIron Maiden 9 replies2 discussions Junior Member
    The posters are totally correct. You will be a dependent student for FAFSA purposes. You can keep asking the question but that is the only answer.
    edited May 2013
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  • SikorskySikorsky 133 replies4 discussions Junior Member
    Could somebody with greater experience tell me what they think?

    Ouch!

    Here's what matters: nobody could give you an answer that's more correct.
    edited May 2013
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  • 3bm1033bm103 16 replies0 discussions New Member
    Just because you own an LLC does not necessarily mean your parents can't claim you if you meet all the qualifications. Any more than having a job would.
    edited May 2013
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  • cartera45cartera45 15 replies0 discussions Junior Member
    Creating an LLC is apropos of nothing.
    edited May 2013
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  • KKmamaKKmama 9 replies0 discussions New Member
    Not liking an answer doesn't make it incorrect.

    You can be independent for tax purposes but dependent for financial aid, and you can also be independent for financial aid but dependent for tax purposes. They do not go hand in hand.
    edited May 2013
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  • dodgersmomdodgersmom 38 replies9 discussions Junior Member
    Could somebody with greater experience tell me what they think?

    Talk about biting the hand that feeds you . . . :(
    edited May 2013
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  • mom2collegekidsmom2collegekids 212 replies4 discussions Junior Member
    You may want someone to "tickle your ears" and tell you that you would be independent, but that wouldn't be true.
    edited May 2013
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  • thumper1thumper1 121 replies4 discussions Junior Member
    You could own Microsoft...and it wouldn't matter. You would be a dependent for financial aid purposes...unless you are married, have a child you support, are an orphan, are a veteran, we're a ward of the state, are over 24.

    Having your own LLC has absolutely no bearing on your status for financial aid purposes. Neither does the tax dependency on your parents and your returns.
    edited May 2013
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  • swimcatsmomswimcatsmom 25 replies1 discussions Junior Member
    Most people posting on the financial aid forum have a lot of knowledge of the FAFSA rules. Post # 2 is exactly correct. Those are the FAFSA questions for determining dependency. As you will see if you read them, being a dependent or not a dependent for taxes is completely irrelevant, owning an LLC is not relevant, being self supporting is not relevant.
    edited May 2013
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  • thumper1thumper1 121 replies4 discussions Junior Member
    Does this thread mean you have decided to return to college? Your last threads were inquiring whether you should drop out of school to pursue your business.
    edited May 2013
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  • CTScoutmomCTScoutmom 34 replies0 discussions New Member
    Post #2 quotes the specific questions asked on the FAFSA to determine whether you are dependent or notm and provides a link to the official website where you can read it yourself. What more do you want? If it was a simple as setting up an LLC (whether it makes money or not), don't you think students would be doing it left and right? The rules exist because it is the responsibility of your family to support you. The only way you get out of it is if your family doesn't exist, or there is an established history of your family not supporting you. They're not entitled to cut you loose at 18, and expect the rest of us to support you through college.

    I'm not sure you even bothered to read the reply in #2
    edited May 2013
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