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Posted

A 2/3 owner in a Salon also has a Sole-Proprietorship, in which she pays herself for services performed in the Salon.  She maintains a Solo-401(k) for her Sole-P, which she maxes out.

Is this an Affiliated Service Group, or does a Salon not qualify under the definition of a Service Organization?  

Thank you

 

Posted

Appears to be an Affiliated Service Group.  You have a sole proprietor receiving a significant level of her sole proprietorship income from performing services to a salon in which she's a majority owner.

Good Luck!

CPC, QPA, QKA, TGPC, ERPA

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