A one-person business has no group to insure and no one to offer an HRA to. Where the owner buys, the deduction and credit that apply, and when hiring the first employee changes the answer.
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The most common small-business question has a short answer: with no W-2 employees there is no small-business health insurance, only the owner’s own.
A group quote, an ICHRA costing and the owner’s own plan all start from the same census: who is on payroll, their ages and home counties. Enter your ZIP and a licensed agent runs all four routes for your business, free.
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Small-group insurers in most states require at least one common-law employee who is not the owner or the owner’s spouse. A one-person S corporation or LLC buys on the individual market or privately, exactly as a 1099 worker does, with the same deduction and the same credit.
Plans For 1099 is the site for this case: the credit on variable income, the deduction by entity type, the $63,840 line, networks for people who travel.
The first W-2 hire makes a group of two possible, a QSEHRA possible, and the Form 8941 credit possible if the pay is modest. It also starts the counting rules for part-timers. The business-type pages here pick up from there.