Tag: Corp

Posted in Business

A Guide to Tax-Advantaged S Corp Health Insurance Deductions



Wooden cubes stacking of healthcare medicine and hospital icons on table


© Getty Images
Wooden cubes stacking of healthcare medicine and hospital icons on table

As you decide on your business structure, you’re probably considering each type’s legal and financial protections. It’s unlikely you’re thinking about the tax implications of your healthcare costs. That’s where the S corporation business tax structure can surprise many business owners.

Business owners start corporations to insulate themselves from their company’s debts. Some corporations can elect S corporation taxation to avoid the double taxation that comes with traditional C corporations.

S corporations further advantage owners involved in management because they can pay themselves in dividends after a reasonable salary. Dividends are subject to federal and state income tax but not payroll taxes.

But the S corporation waters muddy when it comes to providing owners with health insurance benefits. Follow our guide to achieve the maximum tax advantage for S corporation owners’ health insurance.

How do health

Read More