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296 (07/2026) Chapter 2:Eligibility • Section 5: Financial eligibility ownership of the stock is necessary for the individual to be employed by the corporation, the resource is excluded. For MSP and OSIPM: • For an individual with an ownership interest in, and actively working for, a corporation:

Š Count wages paid by the corporation as earned income

Š Count dividend or profits received as unearned income

Š Exclude any income the corporation generates and retains (does not pay as wages or dividends).

Š Exclude the equity value of the stock if maintaining the ownership in the corporation is required to continue working for the corporation (this is usually the case with a closely held corporation). Otherwise, treat stock in accordance with the rules for stocks, bonds, and other securities (does not apply to MSP). • For an individual with part or full ownership of a corporation who does not work:

Š Count the equity value of their interest in the corporation as a resource (does not apply to MSP)

Š Count any income received as unearned income.

Š Count any items gifted or given by the corporation, such as a car or furniture, as unearned in-kind income. Note: The use of something is generally not considered in-kind income, except the use of shelter and utilities, which is considered shelter in-kind. Other business entities This includes all other business arrangements that are not considered corporations - sole proprietorships, partnerships, and unincorporated limited liability companies (LLC). For MSP and OSIPM: • If an individual is part or full owner of any type of a business entity other than a corporation, can be considered a principal, and is working for the business, the individual is considered self-employed and income and resources should be evaluated under the self-employment rules. • If the individual has an ownership interest in any type of business entity other than a corporation, does not meet the definition of a principal (e.g. they are not responsible for its success or failure or have no authority in its daily operation), but works for the business:

Š The income is treated as earned income, except:

Š Any dividends or profits are treated as unearned income.

Š If the individual has to maintain ownership of the business in order for him or her to work there, the value of the ownership interest is excluded; otherwise, the equity value of the ownership interest is treated as a resource. • If the individual has an ownership interest in any type of business entity other than a corporation (regardless of principal status), but does not work for the business:

Š The equity value of the ownership interest is a countable resource

Š Any income from the business is considered unearned income