Eligible for SEP?

[Dougsbpc]

A sole proprietor does business from 1/1/2007 to 12/31/2010. He then forms a corporation on 1/1/11 and also hires an employee on that date.

On 1/1/2013 the corporation adopts a SEP that requires 3 years to be eligible. Can the business owner be eligible for the SEP by counting years with his sole proprietorship?

Thanks.

[Bird]

I'd say yes. You might have to review the adoption agreement to confirm that service with members of a controlled group is counted.