January 23, 2009

How do health insurance tax deductions work for a member managed LLC?

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prizice24 asked:


I own a business (LLC) with two other people. It buy cheap viagra online is only us three; we do not have any additional employees. We pay for our health insurance through our business. Based on these facts, I was wondering how much I stand to save on my personal taxes.

Is this a standard write off like any other business expense or does the IRS treat health insurance differently?

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Comments on How do health insurance tax deductions work for a member managed LLC?

January 27, 2009

HealthQuote360.com @ 12:20 am

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:


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