PlansForSmallBusiness

The owner’s own coverage, by entity type

A small business owner's personal coverage follows the tax entity: Schedule C deduction for sole proprietors and disregarded LLCs, Box 1 for S-corp owners, guaranteed payments for partners, and no HRA for any of them.

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Licensed Agents in 31 States · NPN #22052447

Covering the team is one decision; covering yourself is another, and the rules for the second depend on a box you ticked when the business was formed.

Start with your ZIP and your headcount, not with a plan name

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.

Takes about 30 seconds. No account, and you choose how you are reached.

“I run my own business and my time is valuable. Daniel handled everything — compared the private options, explained what I was actually getting, and had me covered fast. Way better experience than trying to navigate it myself.”
Mark T., client

Sole proprietor or single-member LLC

The premium for you, a spouse and dependents is deducted above the line (Form 7206), up to the business’s net profit, in months with no employer plan available through a job or a spouse. You buy on the marketplace (credit on MAGI under $63,840 single / $132,000 family of four) or privately. In full on Plans For 1099.

S corporation, more than 2%% owner

The corporation pays or reimburses; the amount goes in Box 1 of your W-2 (not FICA wages); you take the deduction on your return. Miss Box 1 and the deduction is lost. You can be on the company’s group plan with the premium handled that way; you cannot take an ICHRA or QSEHRA reimbursement tax-free. December 31 checklist.

Partner or multi-member LLC member

Premiums paid for you by the firm are guaranteed payments: income on your K-1, deductible by you above the line. No HRA participation. The firm can run a group plan or an HRA for its W-2 staff while partners buy their own.

C corporation owner

An owner-employee of a C corporation is an employee: the corporation can provide the premium as a tax-free benefit, include the owner in a group plan or an ICHRA, and deduct it as compensation. The trade is corporate tax on profits; a tax professional weighs it.

The spouse’s plan

If a spouse’s employer offers coverage you are eligible for, the self-employed deduction is not allowed for those months, whether or not you enrol. Compare the family tier of the spouse’s plan against the marketplace or private market with that in mind.