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295 (07/2026) Chapter 2:Eligibility • Section 5: Financial eligibility • Other corporations include companies that sell stock to investors. Proctor & Gamble, AT&T and Starbucks are examples of businesses that sell stock to investors. Owning stock in a corporation does not make the individual self-employed. When an individual’s corporation is considered self-employment For SNAP, the owner or shareholders of a corporation are not self-employed. For ERDC, an individual with an ownership interest in a corporation is not considered self-employed unless they meet self-employment criteria listed per OAR 414-175-0035. For all other programs, an individual with an ownership interest in a corporation is not considered self-employed unless they meet self-employment criteria listed per OAR 461-145-0910. Treatment of income For all programs except MSP and OSIPM: If an individual works for the corporation, that person is usually considered an employee of the corporation. In some situations, the individual owner/shareholder of the S Corporation may meet the definition of self-employed as defined in OAR 461-145-0910(2), 414-175-0030, and 414-175-0035 or use the Self-Employment screening tool in ONE. If determined to be self-employment the total gross income of a corporation is income of an individual and is considered available when the business receives the income. If determined not to be self-employment, the income of a corporation is considered income of the business (not the individual applying for or receiving benefits) until distributed to the individual. Profits are distributed in many ways and can be distributed at various intervals or annually. • If working for the corporation the income is earned income. Example: wages • If not working for the corporation the income is unearned income. Example: Dividends Additionally, for SNAP, income from business entities and corporations is treated as follows: • If an individual is not actively working to produce the income (i.e., dividends), the income is treated as unearned. • If the business entity or corporation pays the individual’s expenses, such as shelter expenses, car payments, car insurance, utilities, etc…, count as unearned income. (For more information, refer to section below on Corporation and other business entity expenditures benefitting a principal.) • Income from a Limited Liability Company (LLC) is treated as follows:
If an individual is a member or a manager member and owner, the income is treated as self- employment income.
If a Individual is a manager but not an owner of the LLC, the income is treated as earned income. • If a Individual owns stock in a corporation, the value of the stock is a countable resource. However, if