If you own an LLC in California, finding the right health insurance in 2025 is crucial, whether you’re a solo entrepreneur or manage a growing team. Understanding your coverage options can protect your health and your business. This blog explains everything you need to know about getting health insurance for your LLC in California.
Skyline Benefit is a trusted health insurance broker in California, helping LLC owners access affordable and compliant coverage.
What Is an LLC and How Does It Impact Health Insurance?
A Limited Liability Company (LLC) is a business structure that combines the legal protection of a corporation with the flexibility of a sole proprietorship or partnership. This impacts how you qualify for and deduct health insurance.
- Limited liability protects personal assets if the business is sued.
- Pass-through taxation allows business income to be reported on personal tax returns.
Can a Single-Member LLC Get Health Insurance in California?
Yes, if you’re a single-member LLC, your best option is typically an individual health insurance plan. In California, you can apply through Covered California, the state’s health exchange, or with help from a broker like Skyline Benefit.
- You may also qualify for premium tax credits based on income.
- Plans are available during Open Enrollment or through Special Enrollment with a qualifying life event.
Can Multi-Member LLCs Get Group Health Insurance?
Yes. If your LLC has at least one common-law employee, you’re eligible for a small group health insurance plan in California. These plans often offer better benefits and lower costs than individual plans.
Benefits of Group Coverage for Your LLC:
- Lower premiums through risk pooling
- Options for Health Savings Accounts (HSAs) or Health Reimbursement Arrangements (HRAs)
- Helps with employee retention and tax savings
Can You Deduct Health Insurance Premiums as an LLC?
Yes, but how you deduct them depends on your tax structure:
- For employees: Health premiums paid for non-member employees are fully deductible as a business expense.
- For self-employed members: Health insurance may be deducted on your personal tax return if the LLC is taxed as a sole proprietorship or partnership.
- LLCs taxed as corporations: May deduct premiums for employee-members if the insurance is offered through a formal plan.
What Legal Requirements Must LLCs Follow in 2025?
If your LLC offers health insurance, you must comply with federal and California laws:
- Affordable Care Act (ACA) rules apply if you have 50+ employees.
- Plans must meet minimum essential coverage standards.
- You may be required to report coverage details to the IRS using Forms 1094 and 1095.
California-Specific Rules to Note:
- California mandates health insurance for residents, with penalties for not having coverage.
- Some plans must include state-required benefits, such as mental health or maternity care.
How to Choose the Right Health Insurance for Your LLC
What Factors Should You Consider?
- Number of employees
- Budget for premiums and contributions
- Plan type (HMO, PPO, EPO)
- Employee needs and provider networks
Skyline Benefit can walk you through all options, ensuring the plan you choose fits your LLLC’ssize and goals.
Can I Use Covered California for My LLC?
Yes, you can! Covered California for Small Business (CCSB) is a good option if your LLC qualifies:
- Must have 1–100 full-time equivalent employees
- Must contribute at least 50% of the employee premium
- Offers access to major carriers like Blue Shield, Kaiser, and Anthem
Skyline Benefit can help determine if CCSB is right for you or recommend a private plan.
Why Work with a Health Insurance Broker Like Skyline Benefit?
Navigating business insurance options can be overwhelming, especially for LLCs in California. Skyline Benefit is an independent health insurance broker based in Fullerton, CA, and we specialize in helping small businesses like yours find the best possible health plans—at no extra cost.
Our services include:
- One-on-one plan comparison
- Employee enrollment support
- Ongoing compliance guidance
- Access to 2025 group and individual plans
Need Help Getting Health Insurance for Your LLC in California?
Skyline Benefit is an independent health insurance broker in Fullerton, CA, that offers affordable and flexible group health insurance options. We are your trusted partner for small business and LLC health insurance in California. We make it simple to compare plans, understand your options, and stay compliant in 2025.
Schedule a consultation today. Call us at: (714) 888-5112