Health Insurance for LLC and S-Corp Owners
If you own an LLC or an S corporation, the coverage you can buy, and how you deduct the premiums, depends on how the business is taxed. This guide covers self-employed owners who file Schedule C, including many single-member LLC owners, and the rule for when a small-group plan is generally an option.
Own a business with 2+ employees? A group plan may cost less (rules vary by state).
Tax treatment depends on the business structure. If you don't file Schedule C, confirm the tax treatment of your premiums with a tax professional. Health Services Pro helps with your coverage, not your taxes.
If you file Schedule C
If you are self-employed and file Schedule C, the health insurance for the self-employed deduction applies to coverage established under your business; the policy can be in your name or your business's name.
The deduction is claimed on Form 7206. Two limits apply:
- It's limited to your net profit. The deduction can't be more than the profit from your business.
- It's not allowed for any month you were eligible for a subsidized employer plan, including through your spouse. That's true even if you didn't sign up for that plan.
Marketplace coverage
You can buy an individual or family plan during Open Enrollment, or outside it if you have a qualifying life event. On the application you report your net self-employment income, which is your business income minus your business expenses. That's the same profit you report on Schedule C. If your expenses are higher than your income, you report a net loss.
Open Enrollment for 2027 runs Nov 1, 2026 to Jan 15, 2027. Enroll by Dec 15 for coverage that starts Jan 1; enrollments from Dec 16 to Jan 15 start Feb 1. Outside Open Enrollment you generally need a qualifying life event (losing coverage, moving, marriage, baby).
For the deduction itself, see our guide to the self-employed health insurance deduction. For Florida-specific tips, see self-employed health insurance in Florida. Individual and family plans are also covered on our individual coverage page.
When a group plan is an option
A small-group plan generally needs at least one employee on payroll who is not the owner or the owner's spouse.
If that describes your business, start with our small business coverage page.
How Health Services Pro helps
Health Services Pro is a licensed, independent agency in Sunrise, Florida, licensed in 30+ states, including Florida and Texas. We work with 50+ carriers and have Spanish-speaking agents. Working with a licensed broker generally costs nothing extra, because brokers are typically paid by the carriers. We help with your coverage, not your taxes, so confirm the deduction with your tax professional.
Frequently asked questions
If I file Schedule C, can the health insurance policy be in my name? Yes. If you are self-employed and file Schedule C, the health insurance for the self-employed deduction applies to coverage established under your business; the policy can be in your name or your business's name.
What form do I use for the self-employed health insurance deduction? Form 7206.
Can I take the deduction if my spouse's job offers health insurance? Not for any month you were eligible for a subsidized employer plan, including through your spouse, even if you didn't enroll in it.
Is the deduction limited? Yes. It's limited to your net profit from the business.
Can I get a small-group plan if the business is just me, or me and my spouse? A small-group plan generally needs at least one employee on payroll who is not the owner or the owner's spouse.
When can I enroll in a Marketplace plan? Open Enrollment for 2027 runs Nov 1, 2026 to Jan 15, 2027. Enroll by Dec 15 for January 1 coverage; enrollments from Dec 16 to Jan 15 start Feb 1. Outside Open Enrollment you generally need a qualifying life event (losing coverage, moving, marriage, baby).
Get your quote
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