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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.  

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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.


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