two single member LLCs
Client owns two single member LLCs treated as disregarded entities and reported on a schedule C. Same line of business, just two separate locations that he keeps separate books for. He has an SEP for the larger of the two LLCs, and now wants to open an SEP for the smaller of the two locations. Dollar amounts are not large, won’t run into limits if he can do plans for both LLCs. But I don’t think he can do the second plan. Is my thinking correct? Thanks.
Permalink Submitted by Alan - IRA critic on Thu, 2020-10-08 23:35
You are correct. This is just a sole prop with two locations. His current SEP must cover all eligible employees of both locations, so he may have a problem. Certainly, he cannot have separate SEP plans per location to expand his limits or for any other reasons.