Dec 01, 2017
Robin Jackson Miller, EA Partner at Terry Lockridge & Dunn
If you are a small business owner continuing to see large individual health insurance rate increases every year, you may be able to find some relief by establishing a group health insurance plan.
Sole proprietors, LLCs and S Corporation owners may be able to start a group health insurance plan, even though the owner might be the only one participating. If you are already paying yourself a salary as an S Corporation, there is nothing extra you would need to do except call your insurance agent today and talk to them about your options for a possible group plan. If you are a sole proprietor or LLC there may be a little more work to do.
As an LLC owner, you would need to pay a salary to your non-owner spouse or already have other employees to start a group plan. You also have the option to make an election to be taxed as a S Corporation and pay yourself a salary to qualify for lower group rates. The S election process is pretty straightforward; however, you would want to contact your accountant immediately to see if this option would work for you.If you are a sole proprietor with a Schedule C or Farm, things are more complicated. Contact your accountant to review your options. You could see considerable health insurance premium savings, so it is worth your time to reach out! Robin can be reached at firstname.lastname@example.org, or contact any of our accountants at 319.364.2945 in Cedar Rapids, or 319.339.4884 in Iowa City.