IS this a Controlled Group

A dentist owns 100% of her PLLC; this company currently has a solo 401k Plan.

She also owns 50% of an LLC with two other people.  Neither of the other two people are related to the dentist. There are no employees in this LLC

The issue is that the LLC is going to purchase a Dental Clinic with employees.   Is this a controlled group, and would she now have to offer the 401k to the dental clinic employees?   The LLC will own 100% of it.

If the LLC and the PLLC are not a controlled group, then adding an entity to the mix that is 100% owned by the LLC won't create a controlled group between PLLC and either LLC or the entity owned 100% by LLC.  Whenever I hear "dentist", though, I get cautious vis-a-vis whether or not an affiliated service group exists.

Thanks Mike - so if the dental clinic is totally separate and  isn't associated with her practice on a regular basis in performing services for third person - do you think it could  pass the AFG tests?

On the other hand, if she associates herself with the clinic on a regular basis - then do you see that as an AFG ( I get confused about A org and B org  or is this something an attorney needs to review and bless before she purchases the clinic?

You don't have nearly enough information to do an ASG analysis.  Refer it to an attorney (who will also confirm that the LLC and PLLC aren't a controlled group (which is also a possibility that someone doing a proper analysis will need to weigh in on).

Thanks I will refer to our ERISA attorney - in the meantime I found out she will be working at the dental clinic as the resident dentist so I am thinking  AFSG is a likelihood.

Yes, seems likely.