Can a one person C corp or LLC-that is where one person is both owner and employee-have a cafeteria plan whereby health insurance and other deductions
can be made.

Any ER with EEs subject to U.S. income taxes can sponsor a Sec. 125 cafeteria plan, regardless of size. For this purpose, an ER can include private ERs, corps (Subchapter S or Subchapter C), P/S nonprofit organizations, LLCs, or sole proprietorships,i.e., I mean SMLLC and government ERs. Additionally, businesses that are under common control or part of a controlled group or affiliated service group can choose to provide a single plan for all of their EEs, or several plans which vary among the business entities, location or other bona-fide employment classifications.