I have a one person S-Corp. I am currently purchasing an individual health insurance plan through the federal marketplace, but would like more plan options. I know that SHOP (Small Business Health Options Program) plans are now available to 1 person S-Corps. There seems to be more plan options on this exchange.

Has anybody established SHOP plans for a person S-Corp / LLC. If so, what does the cost comparison look like for comparable coverage? How does the expense deduction for purchasing insurance through SHOP differ than that of purchasing through the individual marketplace?

1 Answer 1


For expense deduction see below. Also , s-Corp vs LLC very different even though both are tax thru.

You must pay income tax on the health insurance premium payments made by your S corporation. However, such payments are not subject to Social Security and Medicare taxes if you’re the only employee of your S corporation.

When you elect S corporation tax status for your corporation, special tax rules come into play. Under these rules, anyone who works for an S corporation and owns 2% or more of its stock, must include in his or her wages the cost of certain employee fringe benefits provided by the corporation, including health insurance. This means income taxes must be paid on the amount of the premiums. Social Security and Medicare taxes have to be paid as well unless the procedure described below is followed.

When you’re an S corporation owner with more than 2% of the company stock, you’re treated the same as a self-employed person when it comes to deducting health insurance premiums.

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