I am the sole member of first LLC, and I've been doing SEP contributions for several years now.
In 2018, I want to start a second LLC where there will be a second member (let's call him John) who will own a relatively small amount (say 5%).
My understanding is that for 2018, the second LLC is obligated to make SEP payments to John (even if John doesn't want them), and that I can't treat the two LLCs separately.
Suppose in 2018, the first LLC has profit of $200k and the second LLC has profit of $100k, and that I would like to max out my own SEP contribution to $54k.
If the second LLC must contribute to John's SEP:
- What would the minimum amount be?
- Would there be a maximum limit other than regular IRS contribution limits?
I'm curious if there is an acceptable range or a fixed number and how to figure this out...