Guest GG Posted November 29, 2001 Posted November 29, 2001 Dr. X is the sole owner of an LLC. Is Dr. X permitted to have salary reductions from his Section 125 Plan?
Guest RAJ Posted November 30, 2001 Posted November 30, 2001 Actually, the doctor may be able to participate. Even thought his company is listed as an LLC, if he is taxed as a corporation, he would be able to participate in the plan. If he is taxed as a partnership, he cannot. Have him check with his tax advisor for clarification.
Guest GG Posted November 30, 2001 Posted November 30, 2001 If I'm not mistaken, I believe that it's for the same reasons that a S Corp shareholder would be exempt as well. The rules are similar, however I need verification. If someone had a cite, it would be most helpful. Thanks.
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