LLC taxed as C I get health benefits and shift income?

The title says it all…Thank you very much for your important advice. :slight_smile:

yes. An LLC taxed as a C-corp IS, for ALL purposes, a C-corp to the IRS.

Thank you!

Now, to follow up, this benefit is not extended to a S-corp, correct?

Is there a way to deduct for health benefits through an LLC taxed as an S-corp?

Incorrect. Fringe benefits ARE allowed to S-corps, but they must be added to the salary of shareholders who own 2% or more.

So, if you pay 200 dollars each month for Kaiser health benefits, that 200 dollars gets added to your salary?

Since it’s an expenditure, how would you deduct it?

(Pardon my ignorance)

If you’re a 2% shareholder, it’s not.

well, the S-corp deducts it, but it gets added to your W-2 for income (but not social security or medicare) tax. so, ultimately it’s not deducted.