Last updated: January 6, 2023

As a business owner, having small business health insurance is important for everyone, but it's especially important for you as a business owner. If you're the owner of an LLC, you may be wondering how you can buy health insurance.

Here's what you need to know about getting affordable health insurance.

First of all, you should know there are a few different ways to get health insurance as an LLC owner.

You can either purchase an individual policy, buy through your business, or enroll in a health insurance exchange.

Health Insurance Options for LLC Owners:

Giving health insurance policy to an LLC owner

There are a few different options for small business health insurance if you're an LLC owner.

Individual Health Insurance:

Individual health insurance usually offers more flexibility and choices than group plans like those provided by an LLC because you're not bound to any particular provider. If you prefer the freedom of choosing your doctor and hospital, then an individual plan might be right for you.

However, an individual health insurance plan can be more expensive than group health coverage, so you'll need to weigh the pros and cons before making a decision.

If you want to provide health insurance for your employees, you'll need to look into purchasing group health coverage through your LLC. This can be a more affordable option than buying individual plans, and it will also cover your employees.

Group Health Insurance:

A group health insurance plan provided by your LLC will allow you to choose from a variety of providers and can save you money over individual plans.

If employees want to get coverage under the plan, they may have to pay a small monthly premium.

Health Insurance Exchanges:

The final option for getting health insurance as an LLC owner is to enroll in a health insurance exchange.

Health insurance exchanges are marketplaces where you can compare and purchase health plans. They're available in every state, and many of them offer multiple choices.

Choosing The Right Health Plan

Doctor reaching out for patient's hand

Getting small business health insurance as an LLC owner can be a bit confusing, but it's worth taking the time to research your options and find the plan that's right for you.

By understanding your options and choosing the right plan, you'll be able to protect yourself and your business and provide employee health insurance.

If you filed as a non-member employee, you might have to consider getting individual health insurance.

If you filed as self-employed, you might have to consider getting group health insurance plans directly from an insurance company or brokers.

If you filed as a partnership and you and the other partners wish to get group health insurance (which can be inexpensive), I would suggest talking with an accountant or tax advisor to see if that's possible for your company.

If you filed as a corporation, your options would be generally limited, and coverage costs will generally be substantially higher than LLCs and other unincorporated entities.

Most small business owners are now opting for an alternative option, which is a health reimbursement arrangement. An HRA is an agreement between you and your insurance company to be reimbursed tax-free for medical expenses.

You set money aside each month to cover anticipated healthcare costs.

The nice thing about an HRA is that you can use it with individual or group health plans. You can also use it to cover expenses that your regular health plan doesn't cover, such as dental or vision care.

Health Insurance and LLC Taxation:

The taxation of an LLC can significantly impact the type of health plan you're able to purchase.

Single-Member LLC Taxed as a Sole Proprietorship: If you're the only member of your LLC, it will be taxed as a sole proprietorship or as self-employed. One downside of being taxed as a sole proprietorship or as a self-employed individual is that you won't be able to deduct health plan premiums as a business expense.

Multiple-Member LLC Taxed as a Partnership or S Corp: If you're part of an LLC with multiple business owners or members, it will be taxed as a partnership or S corp. This means that the company's profits and losses will flow through to your personal income tax return.

LLC Taxed as a Corporation: If your business is taxed as a corporation, the type of health plan you're able to purchase will be significantly more limited, and the costs will generally be much higher.


Is a Health Insurance Premium Tax Deductible with LLC?

This insurance is made for you, your spouse, and your dependents which are tax-deductible with an LLC. If any person in the company is eligible to participate in a group health plan through their own employer, they cannot be covered by the LLC's plan.

How Much Does Health Insurance Cost?

The cost of health insurance varies, depending on the type of coverage you choose and how big your business is.

How Do I Get Health Insurance if I Own a Small Business?

There are several different ways to get health insurance if you own your own small business. You can purchase coverage on your own or join a group plan through an association or professional organization.

Who Is Eligible for Government Health Insurance?

If you're a business owner and have employees, your small business may be eligible for health insurance through SHOP. You can check to see if your state has a SHOP marketplace and find out how much it will cost to cover both full-time and part-time employees.

Can I Get Health Insurance for Small Businesses Such as LLCs?

The short answer is yes; an LLC can get health insurance. The type of coverage you're able to purchase will depend on the tax status of your small business, but most LLCs can deduct premiums paid for themselves and their employees.


In conclusion, as a small business owner, if you do not buy health insurance, it will cost you! An LLC can get health insurance, but the type of plan available to a company in certain tax status will vary.

To find out more about your options for getting health insurance, talk to an agent who specializes in business coverage for small businesses or seek legal advice.

You May Also Like

Leave a Reply

Your email address will not be published. Required fields are marked *