| Starting a business can be a rewarding
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| | the broker to do a risk assessment to
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| experience, but it can also be very time
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| | determine what coverages you might need
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| consuming and difficult. Many resources
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| | and why. Remember, the broker makes money
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| are available to assist you, but
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| | by selling you insurance "products" so be
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| information overload can cause you from
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| | sure to question the types of coverage
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| moving forward.
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| | and amounts. If your broker can't explain
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| Keeping it simple is often the best way
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| | why he or she is recommending the types
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| of maintaining the momentum necessary to
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| | and amounts of coverage in the risk
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| get your business started. There are a
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| | assessment, find another broker.
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| series of steps to ensure success.
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| | The fourth step is recognizing and
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| The first step toward getting your
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| | implimenting taxes. Sole proprietors need
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| business going is deciding on a name, for
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| | to be conscious of local, state and
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| example "New York Landscaping." Any name
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| | federal taxes and registration
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| that you do business under other than
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| | requirements relating to their
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| your own given name is called a
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| | businesses.
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| "fictitious" or "assumed" name, and
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| | Hiring an accountant or bookkeeper to
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| certain steps need to be taken in order
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| | help set up a simple accounting system,
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| for you to do business under that
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| | or using a software package is a good
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| fictitious or assumed name.
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| | place to start.
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| Depending on where you live, different
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| | Hiring a tax professional knowledgeable
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| government agencies track which names are
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| | about local and state taxes relating to
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| available. Look in your local phone
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| | your business, or contacting the local
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| directory, under government agencies to
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| | tax authorities before you begin
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| find the number, or contact your local
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| | generating revenue or expending money can
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| Secretary of State.
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| | help you stay organized and be ready for
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| Check to find out if the name you want
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| | tax time.
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| has been taken. If it is available, you
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| | Additionally, the IRS offers assistance
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| may need to file a fictitious or assumed
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| | for entrepreneurs starting a small
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| name certificate with the state or local
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| | business in various publications. You can
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| fictitious name office. Some areas will
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| | download IRS Publication 334, entitled
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| also require you to publish a notice in
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| | "Tax Guide for Small Business", and
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| the local paper about your new assumed
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| | Publication 583, entitled "Taxpayers
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| name. Both state and federal law
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| | Starting a Small Business" from the IRS
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| regulates the use of names and
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| | web site.
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| "trademarks". To avoid conflicts with
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| | The fifth step is hiring employees (if
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| other businesses regionally or nationally
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| | needed). Though many small business
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| using your business's name, or the names
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| | people start out running their own shop,
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| of your products, you may want to
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| | success will often bring the need for
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| consider registering your trademark on
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| | expansion. When an employee is added, you
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| the federal or state level. Contact an
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| | must obtain an Employer Identification
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| intellectual property attorney for
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| | Number from the IRS. You can download
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| trademark search and registration
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| | Form SS-4 from the IRS web site.
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| services.
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| | In the United States, the Workers
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| The second step is knowing that different
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| | Compensation scheme does a lot to protect
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| areas have differing licensing and permit
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| | employers from lawsuits by employees
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| requirements depending on the type of
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| | injured on the job, while also providing
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| business you are going into. Most
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| | employees with easier compensation for
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| businesses that require a license will
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| | workplace injuries. Be sure to talk to
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| have a local licensing authority that can
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| | your insurance broker about workers'
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| guide you through the process.
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| | compensation insurance.
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| Find out the licensing requirements on
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| | Talk to your tax adviser, and make sure
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| federal, state, and possibly even local
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| | you register with your state for payment
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| levels for your type of business and get
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| | of unemployment compensation taxes.
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| licensed. Failure to be properly licensed
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| | Download IRS Form W-4 from the IRS web
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| could result in penalties such as fines,
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| | site to take care of employee
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| closure of your business, and
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| | withholdings. You should get copies of
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| imprisonment in some cases.
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| | INS Form I-9 to verify your employees'
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| The third step is getting insurance. When
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| | eligibility for employment in the United
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| things are going smoothly, insurance can
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| | States.
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| seem an unduly burdensome expense on a
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| | Finally, issues regarding wrongful
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| small business. But when things go wrong,
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| | termination, discrimination, workplace
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| whether or not you have insurance can
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| | harassment, and other legal issues have
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| mean whether or not you and your business
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| | come to the forefront in today's business
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| survive a catastrophic event like a
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| | environment. Make sure you have an
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| lawsuit, fire, or natural disaster.
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| | employment agreement that spells out
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| Liability insurance protects you against
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| | whether your employee is "at-will". ex:
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| liability in the event of injury to
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| | can be let go at any time without cause,
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| others or damage to other persons
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| | or the terms of the employee's contract
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| property. Liability insurers most often
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| | for employment.
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| have two duties:
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| | Make sure you Draft employee guidelines
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| 1. The duty to defend you. Hire a lawyer,
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| | or an employment manual to make sure
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| if you get sued and
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| | there are no misunderstandings about what
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| 2. the duty to indemnify you. Pay for
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| | expectations, rules and responsibilities
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| damage or injury to others. Both duties
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| | are in place. Document any issues
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| are extremely important, but the first is
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| | relating to your employees well and be
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| often overlooked by small businesses.
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| | proactive about handling disputes. A
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| The cost of defending a lawsuit can
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| | little planning in the beginning can save
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| easily run into the tens of thousands, or
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| | a lot of headaches and legal expense
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| even hundreds of thousands of dollars
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| | later on.
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| even if you win. That's why being careful
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| | In conclusion- hiring independent
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| is no substitute for liability insurance.
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| | contractors is often a good way to avoid
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| Make sure you have adequate coverage for
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| | the administrative burdens of hiring
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| your vehicles and those of your employees
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| | employees, but be precautious. There are
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| when used for business purposes. You can
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| | many pitfalls to hiring an independent
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| be sued and held liable for injury or
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| | contractor who is for all intents and
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| damage done by your employees if it is
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| | purposes an employee. Talk to a lawyer
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| within the course and scope of their
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| | and your tax advisor about who is an
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| employment.
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| | employee versus a contractor.
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| Property and theft insurance may be an
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| | Copyright © 2005 Abe Cherian
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| important consideration, as well as
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| | You may publish this article in your
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| product liability or service liability
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| | ezine, newsletter on your web site as
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| insurance. This is often called "errors
| |
| | long as the byline is included and the
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| and omissions" coverage.
| |
| | article is included in it's entirety. I
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| Interview a few local insurance brokers
| |
| | also ask that you activate any html links
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| and find one that seems knowledgeable and
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| | found in the article and in the byline.
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| that you feel comfortable with. Then ask
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| |
|
