I can't believe that it's been almost a week since the Health-care Bill passed. My Facebook and Twitter friends were all buzzing with either delight or concern depending on their political affiliations. I tried to stay out of it publicly, but my husband and I talked privately about how the new bill would affect our lives.
The SBA put out a posting on how the Bill affects small business, and the Los Angeles Times put out an article on how the bill affects individuals. To see the bill, go here: http://www.latimes.com/features/health/la-na-healthcare-passage22-2010mar22-html,0,3934537.htmlstory
What do you think?
Friday, March 26, 2010
Thursday, March 11, 2010
Review of Carmen Nobel's Four Types of Insurance
I read this post at: http://www.thestreet.com/story/10698059/1/four-types-of-insurance-businesses-need.html?cm_ven=GOOGLEN Talking about the four types of insurance that every business owner needs. Basically, Carmen Nobel writes that the four types of insurance you need are:
Worker's Compensation
Home Business Insurance
Key Person Insurance
Product Liability Insurance
For Worker's Compensation Insurance, this is, of course, the law in California. However, in my work as a PEO (Professional Employer Organization) broker, I've come across businesses that were operating for more than a year and didn't have it. It's shocking but true. Businesses that hire mainly white collar employees don't really have to worry abut WC costs, because it is so minor. But get into a business like construction or manufacturing, and your WC costs go through the roof. Many times a PEO can assist you by actually charging you 20-30% less because they become the employer of record, and can negotiate the costs with the WC carrier. In some cases, they actually self insure.
Home Business Insurance: According to the blog post, this covers business property, lost documents and loss of income due to lost accounts receivables or emergency relocation. Sometimes this means upgrading a homeowners policy to include the home business, too. Since I've never heard of this type of insurance (just a "rider" on your home owners policy) I'm going to have to check with my insurance agent to find out more about it. I'll let you know what I find out.
Key Person Insurance, commonly known as "Key Man Insurance", is a life insurance policy in which the company is the beneficiary, so if the key person dies or is incapacitated for a long time, the company receives enough coverage to keep it afloat during the transition, whether that means finding and training a replacement or paying off investors before turning the company over to new owners. This kind of insurance is definitely worth looking into if you have a business with key employees.
Finally, Product Liability Insurance: This of course would only apply if you are manufacturing and selling a product. I liked her reference to the movie, The Jerk. "Anyone who doesn't understand the importance of product liability insurance need only watch the movie "The Jerk" -- a riches-to-rags story in which an entrepreneur loses all his money after his invention, a nose grip for eyeglasses, causes thousands of customers to go cross-eyed."
So if you run a business and you don't have any insurance, look into these four types. To read more of Carmen Nobel, go to: http://www.thestreet.com/author/1155442/CarmenNobel/all.html
Worker's Compensation
Home Business Insurance
Key Person Insurance
Product Liability Insurance
For Worker's Compensation Insurance, this is, of course, the law in California. However, in my work as a PEO (Professional Employer Organization) broker, I've come across businesses that were operating for more than a year and didn't have it. It's shocking but true. Businesses that hire mainly white collar employees don't really have to worry abut WC costs, because it is so minor. But get into a business like construction or manufacturing, and your WC costs go through the roof. Many times a PEO can assist you by actually charging you 20-30% less because they become the employer of record, and can negotiate the costs with the WC carrier. In some cases, they actually self insure.
Home Business Insurance: According to the blog post, this covers business property, lost documents and loss of income due to lost accounts receivables or emergency relocation. Sometimes this means upgrading a homeowners policy to include the home business, too. Since I've never heard of this type of insurance (just a "rider" on your home owners policy) I'm going to have to check with my insurance agent to find out more about it. I'll let you know what I find out.
Key Person Insurance, commonly known as "Key Man Insurance", is a life insurance policy in which the company is the beneficiary, so if the key person dies or is incapacitated for a long time, the company receives enough coverage to keep it afloat during the transition, whether that means finding and training a replacement or paying off investors before turning the company over to new owners. This kind of insurance is definitely worth looking into if you have a business with key employees.
Finally, Product Liability Insurance: This of course would only apply if you are manufacturing and selling a product. I liked her reference to the movie, The Jerk. "Anyone who doesn't understand the importance of product liability insurance need only watch the movie "The Jerk" -- a riches-to-rags story in which an entrepreneur loses all his money after his invention, a nose grip for eyeglasses, causes thousands of customers to go cross-eyed."
So if you run a business and you don't have any insurance, look into these four types. To read more of Carmen Nobel, go to: http://www.thestreet.com/author/1155442/CarmenNobel/all.html
Tuesday, March 9, 2010
Cash Prize for Young Entreprenuers...$50,000
I received this letter last week and wanted to share it:
Dear Small Business Supporters,
The Hitachi Foundation Seeks Young Social Entrepreneurs
The Hitachi Foundation is searching the country for the first-ever Yoshiyama Young Entrepreneurs. They are 18 to 29-year olds, and they are operating viable businesses that create jobs, supply goods or services, or use internal management practices that offer low-wealth individuals in America a leg up. Successful applicants will receive a cash prize of up to $50,000 over two years to support their business as well as technical resources.
We know they are out there: young entrepreneurs who, through their innovative products or practices, help move people out of poverty and into the mainstream of American society.
It’s a great opportunity for a young entrepreneur – up to six will be honored. And it’s an opportunity for us to learn what it takes to run a financially sustainable business that gives a boost to people who feel stuck in place.
But we need help searching. Could you forward this to anybody you know who might want to apply, or who might know America’s first-ever Yoshiyama Young Entrepreneurs, or post it on your website or blog?
You will find a short video featuring Barbara Dyer, the Foundation’s president and CEO, discussing the program and all the information about how to apply at http://www.hitachifoundation.org/yoshiyama. The first round application deadline is March 22.
A few highlights of the program include:
• The entrepreneur must have established his or her business with the expressed dual purpose of operating a successful business and accelerating upward economic mobility for low-wealth individuals in America;
• He or she must be at least 18 years old, and must have been 29 years old or younger when the business began generating revenue;
• The business must be 1-5 years old and have been generating revenue for at least the past 12 months;
• The award is open to businesses organized as “for profit” or “nonprofit,” but must depend primarily on an earned-income revenue model.
Thanks so much for joining in the search for the Yoshiyama Young Entrepreneurs.
Dear Small Business Supporters,
The Hitachi Foundation Seeks Young Social Entrepreneurs
The Hitachi Foundation is searching the country for the first-ever Yoshiyama Young Entrepreneurs. They are 18 to 29-year olds, and they are operating viable businesses that create jobs, supply goods or services, or use internal management practices that offer low-wealth individuals in America a leg up. Successful applicants will receive a cash prize of up to $50,000 over two years to support their business as well as technical resources.
We know they are out there: young entrepreneurs who, through their innovative products or practices, help move people out of poverty and into the mainstream of American society.
It’s a great opportunity for a young entrepreneur – up to six will be honored. And it’s an opportunity for us to learn what it takes to run a financially sustainable business that gives a boost to people who feel stuck in place.
But we need help searching. Could you forward this to anybody you know who might want to apply, or who might know America’s first-ever Yoshiyama Young Entrepreneurs, or post it on your website or blog?
You will find a short video featuring Barbara Dyer, the Foundation’s president and CEO, discussing the program and all the information about how to apply at http://www.hitachifoundation.org/yoshiyama. The first round application deadline is March 22.
A few highlights of the program include:
• The entrepreneur must have established his or her business with the expressed dual purpose of operating a successful business and accelerating upward economic mobility for low-wealth individuals in America;
• He or she must be at least 18 years old, and must have been 29 years old or younger when the business began generating revenue;
• The business must be 1-5 years old and have been generating revenue for at least the past 12 months;
• The award is open to businesses organized as “for profit” or “nonprofit,” but must depend primarily on an earned-income revenue model.
Thanks so much for joining in the search for the Yoshiyama Young Entrepreneurs.
Monday, March 1, 2010
Great News! Tax Credit Available for Business
Tax-season is here and we have some good news! You or your clients may be eligible for a $500 tax credit. It's true! It's available to employers with new qualified retirement plans.
Who is eligible?
Employers with 100 employees or less, and who have installed a new qualified retirement plan.
How much can I or my client claim?
50% of the first $1,000 (max $500 credit) of administrative costs for each of the first 3 years of the plans existence.
Are there any other qualifications?
There must be at least one non-highly compensated employee (an employee who owns less than 5% of the company or an employee who earned less than $110,000 during the prior year)
The employer must not have maintained a retirement plan in the 3 years prior to establishment of the new plan
The plan must be a qualified employer plan such as 401(k), defined benefit, SIMPLE, and SEP plans. See complete definition on Form 8881
How do I or my client claim this credit?
Complete IRS Form 8881, Credit for Small Employer Pension Plan Startup Costs. You can download the form at the IRS website here:
See, so now tax time might not be so bad.
What do you think?
Who is eligible?
Employers with 100 employees or less, and who have installed a new qualified retirement plan.
How much can I or my client claim?
50% of the first $1,000 (max $500 credit) of administrative costs for each of the first 3 years of the plans existence.
Are there any other qualifications?
There must be at least one non-highly compensated employee (an employee who owns less than 5% of the company or an employee who earned less than $110,000 during the prior year)
The employer must not have maintained a retirement plan in the 3 years prior to establishment of the new plan
The plan must be a qualified employer plan such as 401(k), defined benefit, SIMPLE, and SEP plans. See complete definition on Form 8881
How do I or my client claim this credit?
Complete IRS Form 8881, Credit for Small Employer Pension Plan Startup Costs. You can download the form at the IRS website here:
See, so now tax time might not be so bad.
What do you think?
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