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How will you form your business means alot

There are four main types of Business Organization:

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Sole Proprietorship
Partnership

  • A. General Partnership
  • B. Limited Partnership
Corporation
Limited Liability Companies

ADVANTAGES AND DISADVANTAGES OF BUSINESS ORGANIZATIONS

Sole Proprietorship

Advantages

  1. Low start-up costs
  2. Greatest freedom from regulations
  3. Owner in direct control and asset ownership
  4. Single level of taxation and both federal and state levels of taxation
  5. Profits belong to owner
  6. Reduced levels of annual reporting

Disadvantages

  1. Unlimited liability
  2. Lack of continuity
  3. More difficult to raise capital
  4. Limits in tax deductions of medical and group life insurance

Partnership

Advantages

  1. Ease in formation
  2. Low start-up costs
  3. Additional sources of capital
  4. Broader management base

Disadvantages

  1. Unlimited personal liability
  2. Lack of continuity
  3. Divided authority
  4. Hard to find suitable partners

Corporation

Advantages

  1. Limited liability
  2. Ownership is transferable
  3. Continuous existence
  4. Legal entity

Disadvantages

  1. Closely regulated
  2. Most expensive to organize
  3. Difficult to liquidate investment

Corporation

Advantages

  1. Tax deferral @ l5% for first $50,000 of income
  2. Medical Insurance is deductible
  3. Group term life insurance is deductible

Disadvantages

  1. Maximum tax rate is 34%
  2. Double taxation
  3. Favorable liquidation tax treatment is no longer available resulting in double taxation.

S Corporation

Advantages

  1. Single level of federal taxation
  2. Single level of taxation upon sale or liquidation of business

Disadvantages

  1. Medical and group term life insurance is not deductible

Limited Liability Companies

An LLC is a new, non-corporate entity combining the operational flexibility and tax status of partnerships with the limited liability protection traditionally associated with corporations. Profit and non-profit activities may be pursued through LLC’s.

Generally, an LLC expressly constitutes a separate and distinct legal person. The basic components which are derived from both corporate and partnership laws, are as follows:

  • Articles of Organization
  • Management
  • Operating Agreement
  • Limited Liability
  • Membership
  • Limited Life

DOCUMENTS YOU MAY NEED

  1. Prepare/Review lease agreements or purchase agreements
  2. Prepare/Review franchise agreements
  3. Prepare/Review buy-sell agreements
  4. Obtain licenses, zoning variances
  5. Provide specific legal advice
  6. Prepare/Review and File Certificate of Incorporation and establish Registered Agent
  7. Prepare/Review By-Laws
  8. Prepare/Review initial meeting of shareholders documents
  9. Prepare/Review and File Trade Name Certificate
  10. Prepare/Review Partnership Agreement
  11. Prepare/Review Agreement of Sale
  12. Prepare/Review Promissory Note
  13. Prepare/Review and File Annual Report
  14. Suggestions on workers’ compensation coverage

IS THE CORPORATE STATUS UP TO DATE? IS THE CORPORATE STATUS UP TO DATE?

  1. Is the minute book up to date?
  2. Are the minutes signed?
  3. Do the minutes reflect the following?
    • a. Annual shareholder’s’ meeting?
    • b. Annual directors’ meeting?
    • c. Special meetings?
    • d. Retirement plan contributions?
    • e. Bonuses?
  4. Are stock certificate books properly up to date?
  5. Are by-laws properly up to date?
  6. Are proper records of expense reimbursements being kept?

You should have your accountant contact your attorney to be certain these and the following questions are taken care of:

  1. Has corporate tax been estimated?
  2. Have deposits on federal and state taxes been paid?
  3. Are there any earnings accumulation problems?
  4. Have state and federal tax returns been prepared?
  5. Have all tax returns been filed on time?
  6. Should a subchapter S election be made or recorded?
  7. Are proper depreciation guidelines being followed?

 
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Commercial Insurance Near Me offers commercial insurance options custom designed to insure your business in case of employee injuries, accidents, property damage, legal liability, business auto, employee-related risks, loss prevention and more.

Commercial Auto Insurance Coverage Gaps We Protect

Commercial Auto Insurance can cover some or all of the following items:

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The insured party (medical payments)
Property damage caused by the insured
The insured vehicle (physical damage)
Third parties (car and people, property damage and bodily injury)
Third party, fire and theft
In some jurisdictions coverage for injuries to persons riding in the insured vehicle is available without regard to fault in the auto accident (No Fault Auto Insurance)
The cost to rent a vehicle if yours is damaged.
The cost to tow your vehicle to a repair facility.
Accidents involving uninsured motorists.

Different policies specify the circumstances under which each item is covered. For example, a vehicle can be insured against theft, fire damage, or accidental damage independently.

Commercial auto policies are designed to protect business entities from exposures that arise from the ownership, maintenance, or use of motor vehicles. Such exposures include lawsuits seeking damages  for BI or property damage (PD) sustained by third parties in auto accidents for which business entities or certain individuals driving the entities’ vehicles on their behalf may be liable. Policies also cover physical damage to insured companies’ vehicles.  Read and learn more about Business Auto Insurance…

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If the insured hires an auto from a vehicle rental agency, the rental agreement will likely hold the insured responsible for any physical damage that occurs to the vehicle during the period of the agreement. In addition, the agreement may render the insured responsible for loss of use of the auto, diminution of value, towing and storage fees, and certain administrative expenses. Loss of use is the income the rental agency loses during the time the damaged auto is out of service for repairs. If the auto has been “totaled,” loss of use includes the period from the date of the loss until a replacement vehicle is obtained.(IRMI)

Commercial Insurance Near Me is here to support your needs for the best small business insurance near me available anywhere.

Commercial Insurance Near Me offers commercial insurance options custom designed to insure your business in case of employee injuries, accidents, property damage, legal liability, business auto, employee-related risks, loss prevention and more.

Learn the BAP-Business Auto Policy Definitions

Learn about Workers Compensation Insurance

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Workers Compensation Business Insurance Lines

The most commonly used workers compensation and employers liability insurance policy is WC000000B (or the pre-2011 version WC000000A), which is published by the NCCI. This policy is widely used even in states that allow insurers to use other forms.

Part One of the policy, workers compensation coverage, affords state required benefits to employees injured on the job.

Part Two provides coverage for the insured’s legal liability for employment related bodily injury or disease other than workers compensation benefits. This exclusive remedy is the basic
premise of the workers compensation system in the United States. That is, it is based on the idea that workers compensation benefits are workers’ “exclusive remedy” for injuries sustained on the job.

Injured workers are provided with certain benefits, regardless of negligence. In exchange, they give up the right to sue the employer for damages in connection with work-related injury. This remains the basis of most state compensation laws.

Workers compensation laws exclude certain employees. Federal programs cover some of these workers. Some may sue their employer to obtain recovery for work-related injuries.

Because of the accountability, compassion, customer-focus, dedication, integrity and professionalism of our outstanding staff, we are meeting or exceeding all of our professional targets. We are making a difference in the lives of injured and ill workers and their families who rely on our insured coverages for financial support and medical care. Our leadership is continually identifying “our next steps” as we move forward in the accurate, complete and timely provision of benefits to our covered workers and their families.

Additional Resources

Go to the full page and also find all US state agencies that regulate Workers Compensation Insurance.

DOL Office of Workers Compensation Regulations

The Office of Workers’ Compensation Programs administers four major disability compensation programs which provide wage replacement benefits, medical treatment, vocational rehabilitation and other benefits to certain workers or their dependents who experience work-related injury or occupational disease.

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Commercial Insurance Near Me offers commercial insurance options custom designed to insure your business in case of employee injuries, accidents, property damage, legal liability, business auto, employee-related risks, loss prevention and more.

More information about OWCP

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Commercial Insurance Near Me offers commercial insurance options custom designed to insure your business in case of employee injuries, accidents, property damage, legal liability, business auto, employee-related risks, loss prevention and more.

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Commercial Insurance Near Me is here to support your needs for the best small business insurance near me available anywhere.

Commercial Insurance Near Me offers commercial insurance options custom designed to insure your business in case of employee injuries, accidents, property damage, legal liability, business auto, employee-related risks, loss prevention and more.