In a sole proprietor LLC, are the costs of Health Care Insurance considered a business expense?
I’m not clear on the structure of the business. It seems to imply that you are a self-employed person possibly who files as an LLC. A sole proprietorship can be one or many people, as can an LLC. It would be important to know the organization to provide you with better feedback. The best advise would be for you to speak with your local CPA or one at least familiar with your business. That being said yes, health insurance premiums can be deducted by the self-employed. Whether you are a sole proprietorship, partnership, LLC or corporation you could purchase health insurance for yourself and/or employees. In any of these cases the portion of the insurance premiums paid for by the business would be deductible. Health insurance is generally itemized as an Employee Benefit. You may find this publication useful in determining where to put certain expenses.
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