"employees" is really only proper if the LLC elected corporate taxation. otherwise you are members/ not employees and do not take a salary. in non-community property states a partnership return would likely need to be filed but the net income loss passes through to the members on their 1040. if the LLC is a business (as opposed to a rental activity) you pay self-employment tax on any net income. medical insurance deduction against adjusted gross income would be limited to any remaining profit after subtracting the S-E tax. if there is no profit the medical insurance is treated as a medical expense and would be reported on schedule A if you itemize. Turbotax can handle this situation with proper input
the policy should be in the name of the LLC or there be a formal reimbursement arrangement if the policy is in your names.
