pbarrett Posted August 21, 2003 Posted August 21, 2003 We have a married Dr. (Dr. X) who owns 100% of his LLC (Co. A), there are no other employees...there is no pension or p/s plan. We have a Partnership owned equally owned by 6 LLCs' Dr. X's LLC is one of the 6. The Partnership pays Dr. X compensation dirctly to his LLC, i.e., the check is cut by the partnershp, payable to Dr. X's LLC. The Parnershp sponsors a profit shring plan that covers all 6 partners and all 30 eligible employees (all Drs receiving the maximum $40,000 allocation). Dr. X's LLC pays $100,000 annually to a Management Company (a C Corp); it's only employee is the owner (the owner is Dr. X's wife or Mrs. X). A DB plan is to be established and sponsored by the C-Corp for Mrs. X (Dr.'s wife)... see any problems?
jaemmons Posted August 25, 2003 Posted August 25, 2003 What is the relationship of the partnership to Company A? You may need to see if there is an affiliated service group: The partnership the FSA, Company A the "A-org" and Company B as the "B-org" (since the wife of Dr.X is indirectly an owner and HCE of the FSA).
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