Guest Darla K Posted July 16, 2003 Posted July 16, 2003 Can a LLC have a Cafeteria Plan put in place? If so or if not, can someone explain the specifics to me as to who can or cannot participate. Thanks
Guest b2kates Posted July 16, 2003 Posted July 16, 2003 an LLC being little more than a partnership for tax purposes may offer a cafeteria plan to its W-2 employees; however members (partners) may not participate.
Ron Snyder Posted July 18, 2003 Posted July 18, 2003 Under the "check the box" regulations, LLCs may elect to be taxed as corporations or as partnerships. If they elect to be treated as a corporation, they certainly can adopt a 125 plan and all employees may participate. If an LLC elects to be taxed as a partnership, the LLC may still adopt a 125 plan but 2% owners may not participate in the plan.
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