Health Insurance for Small Business Owners and LLCs
July 30, 2026 · 6 min read
Group plan? Individual plan? Something for the team? How California owners actually structure health coverage — without an HR department.
Owning a business changes the health insurance question from 'what does my employer offer?' to 'what do I build?' The good news: you have more options than employees do. The catch: nobody hands you the menu.
Covering yourself
Most California owners start — and many end — with an individual private PPO plan for themselves and their family. It requires nothing from the business: no group plan, no census, no participation minimums. Premiums are often deductible for the self-employed; your tax professional can confirm how it applies to your structure (sole prop, LLC, S-corp rules differ).
When a group plan makes sense — and when it doesn't
Group coverage starts earning its overhead when you're competing for employees who expect benefits. Below that point, it's a lot of cost and administration for a small team. The in-between answer many owners land on: each employee enrolls in their own individual private plan, with a licensed advisor guiding them for free — coverage for the team, no group infrastructure for you.
Mistakes to skip
- Staying uninsured 'until the business stabilizes' — you are the business; insure the founder first
- Health sharing ministries as a cost fix — they're not insurance and aren't obligated to pay claims
- Assuming the Marketplace is the only store — private plans enroll year-round with no income paperwork
Get it sorted in one call
Answer three quick questions and a licensed California advisor reaches out. Whether it's just you, your family, or a plan for the whole crew — they handle it from there, free.
Rather just talk to a person?
Answer three quick questions and a licensed California advisor reaches out to help with whatever you need — free, private, zero pressure.