Sole Member LLC Premiums have their own place

Who the policy covers

The first question is whose name is on the policy and who it covers. A policy in the member's name, paid by the member or by the company for the member, is a personal-return question for a disregarded company. It is not automatically a line on the profit and loss.

If we put the premiums on the company expenses and also take them as an adjustment on the personal return, we have deducted them twice. That is a common mess, and it is fixable when we see both the bank and the return together. It is not something to leave for a notice.

Eligibility has rules. Other coverage, a spouse's plan, Medicare, and the way the premiums were paid can all change the answer. We read those facts. We do not promise an adjustment because a page said premiums are deductible.

Employees change the picture

If the shop has employees and a plan that covers them, the company side gets more formal. That is a benefits question and a payday question, and it belongs with the provider who runs payday once payday exists. We still map the cost into the books so the month can close.

A spouse on the policy is not, by that fact alone, a member of the company or an employee.

Membership is the company agreement.

Coverage is the policy. We keep the documents apart so the return does not invent a role.

Marketplace coverage and a premium credit have their own reconciliation on the personal return. If that is part of your year, tell us. The credit and the deduction do not stack by enthusiasm.

What to send

The annual form from the insurer, or a simple total of what was paid and from which account, is enough to start. We do not need the medical records. We need the money and the names on the policy.

If last year's return deducted the premiums in two places, say so. Correcting a pattern is part of the work. Hiding it until April is how a small double count becomes a larger one.

The close still happens monthly. A premium that drafts every month should be in the same place every month, so December is not the first time anyone sees it.