Posts made in January, 2016

Should You Restructure Your Business for Tax Reasons?

Posted by on Jan 21, 2016 in News | 0 comments

Ninety-five percent of all businesses in the United States are considered “small” or “micro” entities. With only a handful of employees, it often means that they are sole proprietorships. This also means that come tax time, they will have to deal with various rules and regulations for how their business income is taxed. It also leads to agonizing countless hours over reorganization to take advantage of tax laws and loopholes. If you have been up late a night worrying about restructuring your business for tax reasons, take a look at this short guide to help you make a decision. The three most common business classifications for small businesses are: Limited Liability Corporation: This structure has gained popularity in recent years. It lets business owners limit their exposure to liability (including debt liability); income from LLCs goes directly to business owners and is taxed at the personal income level. S-Corporation:This structure is slightly different from the LLC. While it limits an owner’s liability, it allows owners to pay themselves a salary and collect any additional profits the business earns. These profits are taxed at the personal income tax rate. To qualify for S-Corp status, businesses must adhere to certain organizational guidelines that are much easier for smaller firms to meet. C-Corporation:This is the standard structure for larger companies, though some smaller firms find benefits in this structure as well. One of the main attractions is that dividends are taxed at the corporate level, which is currently lower than the comparable personal income level. So, should you consider restructuring your small business for tax purposes? It depends. Each business has different factors to consider when establishing a business structure just as each business has different liability insurance needs. Please be advised that there could be costly long-term ramifications while switching form one structure to another even if it comes with short-term tax benefits. Specification taxation structures used for each class of business are, unfortunately far from being straightforward. For example, revenue from a C-Corps might be taxed twice, negating any benefit from having it taxed at the business rate. And, if you plan to sell your company or pass on to your children, one might more sense for estate planning purposes. Here’s the bottom line, don’t make any restructuring decisions without talking to your lawyer and/or...

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Insurance Coverage for Public Companies

Posted by on Jan 15, 2016 in News | 0 comments

Through our partner company Travelers, Harned Insurance offers Travelers Executive Choice+SM – a suite of products specifically for public companies.  These products have been built and shaped to address the current management liability exposures faced by today’s public companies. You can find a complete overview here  Below you will find a brief breakdown of Travelers Executive Choice+SM for public companies: Directors and Officers Liability –  Directors and Officers liability insurance provides specialized coverage for the directors and officers of your company. This coverage protects these individuals against losses that may result from alleged errors in judgement, breaches of duty, or wrongful acts in the course of their work for your organization. Side A DIC D&O Liability – Specifically designed to meet the unique needs of directors and officers, Travelers Broad Form Plus+ policy combines expert claims-handling with extensive coverage for non-indemnifiable claims against directors and officers (Side-A) that includes difference-in-conditions (DIC) drop-down features not found in traditional D&O policies. Employment Practices Liability – Employment practices liability insurance protects your organization when claims arise from allegation of wrongful employment practices. This includes, for example, claims related to failure to promote, discrimination, and sexual harassment. Fiduciary Liability –  Fiduciary liability insurance protects benefit plans, the sponsor organization and individuals acting as fiduciaries or administrators of the plans. The policy covers liabilities arising out of violations of any of the responsibilities, obligations, or duties imposed upon fiduciaries by ERISA. Miscellaneous Professional Liability – Miscellaneous Professional Liability (MPL) covers errors and omissions for a variety of professional service providers.  MPL provides coverage for negligence in the performance of services where a reasonable standard of care is expected. Crime – Crime insurance addresses the most common fidelity threats, including losses due to employee dishonesty, credit card forgery, computer fraud and theft, and disappearance and destruction of property. With crime protection from Travelers, you can obtain a wide range of coverages to help protect your business against financial loss due to certain crimes. This includes theft or forgery committed by employees, as well as other crimes committed by individuals outside of your organization. Kidnap and Ransom –  Kidnap and ransom insurance policies provide coverage in the event of a kidnapping. This typically includes coverage for monies paid to kidnappers or extortionists, loss of ransom in transit, and other expenses incurred as a result of a kidnapping. Identity Fraud Expense Reimbursement –  Identity fraud is one of the fastest growing crimes in the country today, impacting several million people per year. Travelers will pay for expenses associated with clearing identity fraud victims’ credit and also give them the information and guidance they need to resolve the problem. Coverage options are available individually, or combined with other offerings to provide a more extensive solution to your risk exposures. All of these products are designed to work together to minimize coverage gaps and overlaps. Protecting your company’s assets and the best interests of your management team is essential to the long-term success of your organization, so it’s important to establish an effective management liability package...

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Day to Day Issues that Affect Your Small Business

Posted by on Jan 8, 2016 in News | 0 comments

You don’t have to be a lawyer to open and run a small business. Find out how to handle day-to-day legal issues that could affect your small business. Industry Laws & Regulations A variety of laws exist that govern how business is conducted in general, and in specific industries. Get acquainted with the laws that pertain to your small business. Employment & Labor Law Learn about U.S. employment laws and regulations and how employers should comply with them. Handling Legal Concerns Do you know how to handle legal issue that impact your business? Protect yourself and your business by knowing what resources are available to you. Understanding Fair Practice What’s an Antitrust law? It’s important to understand these laws so that you do not risk your business’s integrity while gaining customers. These resources will help you have a better understanding. Understanding Insurance for Your Business If you are a business owner, you should consider purchasing the following insurance policies to ensure that your company is protected. Source:...

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