You are here:

Tax Law (Questions About Taxes)/Single Member LLC, S-Corporations, SIMPLE IRA and SEP IRA


I currently operate a Single Member LLC that serves as a holding
company for two separate S Corporations I operate.  Each S Corporation has common-law employees and SIMPLE IRA accounts.  Could it be possible for me to open a SEP IRA for the single member LLC and contribute the maximum of $5,500 + 25% of net earnings and contribute the maximum to a SIMPLE IRA?  I currently only contribute to one (1) SIMPLE IRA account where I am an active participant in the company's operations.  Further, the LLC does not sponsor any tax-deferred plan.

I'm going to stop you at the first sentence.

You have a "Single Member LLC that serves as a holding company for two S Corporations"

This is impossible. You have invalidated the S-corporation elections. An S-Corp can ONLY be owned by a person, never by another entity.  

Tax Law (Questions About Taxes)

All Answers

Answers by Expert:

Ask Experts


Randall Klein, MBA, EA


I am an expert in personal and small business taxation, including Forms 1040, 1120, 1120S, 1065. I can answer any type of tax question except those that are requesting help in illegal tax evasion. Tax avoidance is legal, however. I do not do offshore trusts, or opt-out of the tax system type of queries.


25 years real experience in dealing with tax preparation, representation before the IRS, tax problem resolution, and more. Successfully represented clients in Offers in Compromise with more than 95% of all offers accepted.

National Association of Enrolled Agents National Society of Tax Preparers BNI - Business Networking International

Yahoo Answers - recognized as a tax expert.

MBA, Weatherhead School, Case Western Reserve University. BA, Indiana University, Bloomington Enrolled Agent, licensed by US Treasury.

Past/Present Clients
Most of my clients are small business owners

©2017 All rights reserved.

[an error occurred while processing this directive]