Can a Married Couple of Freelancers Form a Company for Health Insurance Benefits?

Self-employed individuals may consider forming a company with their spouse to take advantage of certain benefits, such as group health insurance and retirement savings. Here’s a comprehensive guide to explore this option:

What is a Business Entity?
A business entity is a legal structure that separates a business from its owners. It can be a corporation, a partnership, or a limited liability company (LLC), among others.

Advantages of Forming a Company

Group Health Insurance: A company with at least two owners can purchase group health insurance, which may offer lower premiums and more comprehensive coverage than individual plans.
Retirement Savings: Owners can contribute to employer-sponsored retirement plans, such as 401(k)s, which offer higher contribution limits than individual retirement accounts (IRAs).
Tax Advantages: Some business structures allow for the deduction of business expenses and provide flexibility in taxation options.

Legal Considerations

Entity Selection: Choose the most appropriate business entity based on your specific needs and legal requirements.
Licensing: Ensure that the company meets all necessary licensing and registration requirements for the industries it operates in.

Tax Implications

Filing Status: The business entity will determine the type of tax return you need to file (e.g., partnership return, corporate tax return).
Pass-Through Taxation: Certain entities, such as LLCs and S corporations, pass their earnings and losses directly to the owners, who report them on their individual tax returns.
Self-Employment Tax: As a self-employed individual, you are responsible for paying self-employment taxes (Social Security and Medicare).

Health Insurance Options

Group Health Insurance: A company with two or more owners can purchase group health insurance plans. Premiums and coverage will vary depending on the plan selected.
ACA Marketplace: Freelancers who do not qualify for group health insurance can purchase individual health insurance plans through the Affordable Care Act (ACA) marketplace.
Medicare: Individuals who are age 65 or older or have certain disabilities may qualify for Medicare coverage.


Forming a company may be a viable option for married couples of freelancers seeking health insurance benefits and other advantages. However, it’s essential to carefully consider the legal, tax, and financial implications before making a decision. Consulting with professionals, such as an attorney, accountant, and insurance agent, is highly recommended to ensure the best outcome for your specific situation.

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