Jan 252010
I have a business with two other people (society). Only three of us, we have no additional staff. We pay our health insurance through our business. Based on these facts, I would like to know how can I save my personal income tax. This is a standard write-offs, like all other costs of employment or health insurance, the IRS is a different treatment?
Multiple member LLC’s can be taxed 3 different ways:
1. As a partnership
2. As a C corporation
3. As an S Corporation
The deductability of health insurance premiums for your LLC will depend on which of the 3 types of entities your LLC elected to be taxed at (the default is the partnership form of taxation).
Typically, you will be able to deduct 100% of your health insurance premiums although there are some specials considerations for owner/officers of S Corporations who own more than 2% of the company.
If you speak with a CPA or qualified tax advisor they should be able to give you plenty of good tips. One thing that you may want to mention is a medical reimbursement plan. Here is some more detail on medical reimbursement plans. Check out this site to find the best health insurance just in one minute,
http://best-free-health-insurance-quote-usa.blogspot.com/
Here you can get free quotes from different health insurance companies in your area, its the best way to find an afforable health insurance with a reliable company.
Best Wishes,
I have a business too but with employees. I’m licking my chops at the prospect that I’ll never have to provide employee health and Workman’s compensation ever again. What a savings!
Sabra, great info.
Currently you can take a deduction as a business expense. B-Ho wants that changed because he wants a single payer system…government run. Look for changes in the deduction and phasing out private insurance if the socialist pass the bill.