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Multiple Companies
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1 Reply
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If i wanted to still use a solo 401k with a business that has employees is it possible to do that by having 2 businesses? Buisness A is a single member LLC with no employees and thats who the solo 401k is through. Business B is 100% owned by business A and thats where the business is actually conducted and who the employee work for. Would a set up like this work?
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Thank you for your good post!
Under the controlled group rules, two entities that are 100% owned by the same person are part of a controlled group such that an employee that works for one entity is considered to be an employee of the other entity in determining whether such other entity can set up a Solo 401k.
As such, if either entity has non-owner/non-spouse full-time w-2 employees neither entity may sponsor a Solo 401k.
