How Do Health Insurance Tax Deductions Work For A Member Managed Llc?

By | In: Health | 1 Comment

26 October 2009

I own a business (LLC) with two other people. It 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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One User Comment : Share your thoughts

  1. prizice2 October 27, 2009 at 12:35 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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