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Updated almost 8 years ago on . Most recent reply

User Stats

13
Posts
2
Votes
Bill D.
  • Orlando, FL
2
Votes |
13
Posts

Solo 401K and employees

Bill D.
  • Orlando, FL
Posted

Hello BP Community,

I to move my retirement accounts into a Solo 401K and I understand that you can not have full time employees and still qualify for the Solo 401K, so I have a couple of questions about this. My business will be in the flipping of houses so I expect to have a sales person, dispositions person, an assistant and more as I grow. 

(1) Can I just have everyone be a consultant and 1099 them at the end of the year? Will I putting up red flags to the IRS if everyone is a consultant?

or

(2) For asset protection purposes, I will be setting up 2 LLC's. One in Wyoming for anonymity and one in Florida where I am located. The Wyoming LLC will own the Florida LLC. The Florida LLC will have the employees. Does the IRS still see me as having fulltime employees in this type of scenario since my name will not be on the Florida LLC.

Thank you for any guidance on this

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