Start Up - C Corp.

[Guest RJM26]

The client has 9 operating companies set up as C Corps. Five are owned by one principal owner and four by the other. They also have an administrative company that is a S Corp. jointly owned by both principal owners.

Trying to figure out if all of the operating companies and the administrative company can all be covered under one plan.

[shERPA]

Certainly they can be covered by one plan. The question is whether or some or all of the 10 entities involved are treated as a single employer, or multiple employers for purposes of plan coverage, non-discrimination, reporting, etc. It may be an affiliated service group under 414(m)(5).

[Guest RJM26]

Certainly they can be covered by one plan. The question is whether or some or all of the 10 entities involved are treated as a single employer, or multiple employers for purposes of plan coverage, non-discrimination, reporting, etc. It may be an affiliated service group under 414(m)(5).

Thanks for the response. The client is going to work with their attorney to determine if they are part of an affiliated service or controlled group. Thank you for the information.