S-corp, LLC, partnership or 1099 · what changes, across 23 states
Prefer to talk? Call (713) 575-9904
Licensed Agents in 31 States · NPN #22052447
Every owner asks the same two questions: how do I deduct this, and am I anywhere near the subsidy cliff. The first answer depends on how you are taxed. The second depends on where you live, and it varies more than anyone expects — from $3,244 a year in Mississippi down to nothing at all in two states.
Enter a ZIP and your rough income and a licensed agent will tell you which side of the line you are on, and what it is worth doing about it.
★★★★★
“I run my own business and my time is valuable. Daniel handled everything — compared the private options, explained what I was actually getting, and had me covered fast. Way better experience than trying to navigate it myself.”
| If you are a… | Your income arrives as | And the premium is deducted | Read |
|---|---|---|---|
| Sole proprietor / 1099 | Schedule C net profit | Deduct on Schedule 1, capped at net self-employment income | 1099 contractors |
| Partnership / multi-member LLC | Guaranteed payments on your K-1 | Partnership pays or reimburses; you deduct on Schedule 1 | LLC owners |
| S-corp (or LLC taxed as one) | W-2 salary plus distributions | Premium must appear on the W-2 before you can deduct it | S-corp owners |
| C-corp | Salary; company is a separate taxpayer | Generally a company expense rather than a personal deduction | — |
A single 40-year-old just under $63,840 pays no more than $543.70 a month for the benchmark plan. Just over it, they pay full price. In two states that is the same number, so the cliff costs nothing at that age; in Mississippi it is $3,244 a year.
Married, with the family on a spouse’s plan? The employer affordability percentage (9.96% for 2026, 10.22% for 2027) decides whether your family can use the marketplace with a tax credit instead.
No. Eligibility is based on household income and household size. The structure changes how the premium is deducted, which changes the income figure the subsidy is measured against.
Partly. These pages are about covering the owner. If you are covering staff as well, the choice is between a small group plan, a QSEHRA and an ICHRA, and it turns on what your employees earn.
Benchmark premiums: the second-lowest-cost Silver plan for a 40-year-old, weighted by county enrollment, from the CMS PY2027 Landscape file, the same figures used across this site. Cliff: 400% of the 2026 HHS poverty guideline (91 FR 1797), $63,840 for a single-adult household. Applicable percentage: 10.22% for 2027 (Rev. Proc. 2026-26). Nothing here is tax advice — the arithmetic is public, the decision is yours and your CPA’s.