Jump to content

LLC's and Cafeteria Plans


Recommended Posts

Guest Philip Simpkins
Posted

Please help! I am getting conflicting answers regarding the treatment of LLC's in a Cafeteria Plan. Can the owners participate?

Which of the following opinions is correct?

One answer is that LLC's are treated as partnerships no matter how they file their income taxes, therefore, the owners cannot participate at all.

One answer is that it is based on how the LLC files. If the LLC files as a C-corp, there are no exclusions whatsoever.

I have also come across a strange reference that states that owners of 10% or more of the employer are defined as "self-employed". It does not expound. Does anyone understand this sentence?

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

Terms of Use