Db Plan - constructive ownership

[Guest Yelena39]

Are you familiar with the following scenario:

Three foreign partners ( non-resident aliens) wish to set up a defined benefit plan in a US-based LLC.

There is only one employee in the LLC, who actually manages the business. This person will be part of the db plan ( of course).

Questions:

1. Is it possible to set up a defined benefit plan for such a structure?

2. Would not this type of relationship between the LLC and its employee be considered as a de facto ownership?

Any comments, ideas, further questions will be appreciated.

Regards, Yelena

[SoCalActuary]

Probably a good idea for sheltering part of manager's income.

One employee is probably a key employee, depending on income and status as an officer.

If there are other employees, you must include at least one other when they become eligible.

The three foreign owners are just llc members treated like stockholders, and not employees.