QUESTION

I'm a professional student who is looking to start an online business. Must I include this in my FAFSA? (I'm considered a dependent)

Asked on Jan 08th, 2021 on Business Law - District of Columbia
More details to this question:
It is going to be a small online store. I will be only person running it and I'm selling my items through the online store
Report Abuse

1 ANSWER

Corporate & Incorporation Attorney serving Washington, DC at 10K Law P.C.
Update Your Profile
Small businesses are critical to economic growth in the United States, as is higher education as best practices evolve rapidly. Fortunately, FAFSA does allow some critical exemptions for small businesses (fewer than 100 employees) and their Business Assets - these are assets used in Operations. E-Commerce assets should be reviewed in the context of their functioning purpose within the business operations for proper treatment on a particular individual's FAFSA application. As a good example to illustrate this importance of contextual details, a single parcel of real estate may be treated in two different ways depending on its declared function, deed, etc: Omit the value from FAFSA if deemed to be a Business Asset, which asset is generally used in business operations and typically deeded to the company rather than an individual; or Counted the value for FAFSA if deemed to be an Investment Asset, which asset might earn income as a rental or be in your own name, for example. Even if FAFSA counts an asset, Asset Protection Allowance may let you count just a percentage, which rate can differ based on a few factors like the student's status as a Dependent. Despite this allowance declining in the recent decade, its benefit or something similar could arise on the horizon in our near future.  These benefits can be critical lifelines to a small business wishing to invest significantly in higher education. E-Commerce assets should be reviewed in detail to establish the proper treatment for your FAFSA application.   
Answered on Feb 02nd, 2021 at 11:51 AM

Report Abuse

Ask a Lawyer

Consumers can use this platform to pose legal questions to real lawyers and receive free insights.

Participating legal professionals get the opportunity to speak directly with people who may need their services, as well as enhance their standing in the Lawyers.com community.

0 out of 150 characters