Who Can Sponsor an FSA?
• Regular Corporations • Partnerships • S Corporations • Limited Liability Companies (LLCs) • Sole Proprietorships • Professional Corporations • Not-For-Profits All of the above can save money on taxes by establishing an FSA plan. While regulations prohibit a sole proprietor, partner, members of an LLC (in most cases), or individuals owning more than 2% of an S corporation from participating in the FSA plan, they may still sponsor a plan and benefit from the savings on payroll taxes. “Employee” shareholders of regular corporations may also participate.
