LLC owners confused about COBRA premium tax deductibility and self-employment tax treatment

Small business owners operating as LLCs struggle to understand whether COBRA health insurance premiums are deductible business expenses and how they interact with self-employment tax calculations. This confusion leads to incorrect tax filings, missed deductions, and potential audit risk. Current tax guidance is fragmented across IRS publications and varies based on LLC structure (taxed as S-corp vs. sole proprietorship), leaving owners uncertain about compliance.