We have an LLC (1065 for Irs tax filing). Husband and wife LLLC- 2 members/partners - get K1 at the end of the year. We do not make a lot of money from this business. And we are an older couple.
Re HRA -Health Reimbursement Arrangement How can we set it up ourselves without using outside third parties to set it up and administer it? So we can keep the costs to zero?
Any requirements? Any forms to fill? Any deadlines?
Any and all info would be highly appreciated.
Thank you.
Take a look at
You are not employees of a partnership. As such, an HRA is not allowed.
One of the web sites about HRAs said that it is possible to make one spouse the owner of the LLC and the other an employee who is eligible for an HRA, but I got the impression that unless you can come up with other justification for the spouse being an employee and are very careful about your paperwork, it's asking for trouble.
Re HRA plan
*************Would this work for an LLC where H+W are not employees?
Both H+W get K-1s. Older couple. Tiny business. Only 2 members/shareholders 50/50: H+W. No employees except thinking of making our son an employee to help out.
If son becomes an employee of the company and we create an HRA plan. He will be the only employee of the company. He is over the 27 year dependent age.
Then can we as parents be covered under such an HRA plan?
In other words can all 3 of us get benefits from this HRA plan with only our son as the only employee of our LLC?
I believe the answer is no unless you are his dependents, and that does not seem to be the case.
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