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When it comes to setting up your business, there are a lot of t's to cross and i's to dot before you can take off. This presentation, from Justworks and Early Growth Financial Services, provides a handy checklist of those things you need to consider and take care of (properly!) when you're starting up, including setting up an EIN, securing SUI, choosing your corporate entity, registering trademarks, and more.
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BENEFITS & HEALTHCARE FAQ
COMPANY FORMATION CHECKLIST COMPLIANCE AND LAW
PRESENTED BY
GETTING YOUR STARTUP STARTED
TIPS & TRICKS FOR NEW BUSINESS OWNERS
Sirk Roh:Chief Operating
Office
Robert Lopez:Head Of Sales And
Business Development
33%of small businesses get
fined for doing payroll incorrectly
“Financial operations aren’t my forté. I have little tolerance for paperwork, forms, or bookkeeping, and so had been putting off some
operational tasks for too long – knowing this, I should have outsourced this as early as possible…
Don’t cut corners here.”
- Seth Bannon, Y Combinator Alum and CEO and Founder of Amicus
Set up an EINFREE TO SETUP
Get an SUI REQUIRED FOR PAYROLL
Open a Business Bank Account
NEED COMPANY NAME AND EIN
Workers’ Comp & DisabilityREQUIRED BY LAW IN SOME STATES
A FEW THINGS TO DO AT THE VERY START
COMPANY FORMATION CHECKLIST
SET UP YOUR EIN
• An EIN, also known as a Federal Tax Identification Number, is
used to identify a business entity. EINs are issued for the
purpose of tax administration. Anyone who has started a new
business or hired or will hire employees is required to have an
EIN
Why
Where
You’ll Need
• You can obtain an EIN for free at
https://sa2.www4.irs.gov/modicin/individual/
• Your social security number
UNEMPLOYMENT AND WITHHOLDING
• Setting up withholding with your SUI (State Unemployment
Insurance) Number ensures that quarterly combined returns
and unemployment insurance payments are credited
promptly and accurately. You can’t set up payroll without
this, unless you use a PEO (like Justworks).
Why
Where
You’ll Need
• https://applications.labor.ny.gov/eRegWeb/
• Your EIN or SSN
OPEN A BUSINESS BANK ACCOUNT
• If you co-mingle your personal and business finances, a
court can potentially go after you as it looks like you and the
corporation are one and the same. Using a separate
business account makes it much easier to file your business
income and expenses separately from your personal
transactions
Why
Where
You’ll Need
• PNC Bank, First Niagara, Peoples United Bank, SVB, others
• Name of company and EIN
SET UP WORKERS’ COMP(IF YOU HAVE EMPLOYEES)
• Workers’ compensation insurance protects employers and
employees against financial losses in the case of injury.
Not carrying this insurance for employees is a crime and
the business owner can be prosecuted for a misdemeanor
or felony (in NY, you also need disability).
Why
Where
You’ll Need
• http://workcompone.com/
• Name of company and census data (salary, job type, location)
Obamacare & My Business
HOW WILL IT BE AFFECTED?
Getting a Policy HOW CAN I DO THIS?
Contributing to PolicyWHAT IS TYPICAL?
Going without a PolicyTHE COSTS ASSOCIATED?
COMMON QUESTIONS
A Great Benefit for your Employees
HEALTHCARE FAQ
The ACA provides access to lower cost health insurance plans and
subsidized policies for employees and employers. No more pre-
existing conditions; you can not be denied coverage. Subsidies are
based on income. Health Republic & Oscar are 2 examples in NY.
Get more info at:
http://healthcare.gov
and
nystateofhealth.ny.gov
AFFORDABLE CARE ACT AND YOUR BUSINESS
• Visit http://healthcare.gov or get in touch with a broker to find a
group policy for your company
• If your company employs less than 50 employees you have no
obligation to offer health insurance; Depending on income levels,
some employees might qualify for subsidies
• Educating your employees about their options (exchange,
agents) is a good idea since being individually insured is a
requirement of the ACA.
• For employers with more than 100 employees, the fine for not
providing insurance could be $2000 per employee.
HOW DO I GET HEALTHCARE?
Generally speaking the minimum contribution for all states is 50%-
60%
You can find additional information on the government websites
listed on previous slide or seek consultation from a licensed
agent / broker.
MINIMUM CONTRIBUTIONS FOR HEALTH INSURANCE
• Since health insurance can be very confusing and an emotional
product any help you can provide for your employees will be
seen in a positive light.
• US citizens are required to carry health insurance or face fines
starting April 2014.
• If you’d like your company to pay for your employees’ individual
policies, you can, but keep in mind:
• It’s considered taxable income, so unlike a group policy,
there is no pre-tax benefit
• You may not discriminate by paying for one employee’s
health insurance while not paying for another’s
THE HEALTHCARE EXCHANGES
Dental InsuranceGOOD BENEFIT AND LOW COST
Vision InsuranceGOOD BENEFIT AND LOW COST
General LiabilityTYPICALLY NEEDED FOR OFFICE SPACE
D&O InsurancePROTECTS FOR SENSITIVE INFORMATION
A FEW THINGS TO DO AT THE VERY START
OTHER BENEFITS & INSURANCE
Contractors vs. Employees
DO THE RIGHT THING
Corporate Entity Type WHERE AND HOW TO INCORPORATE
State of IncorporationUSUALLY DELAWARE
Trademark RegistrationPROTECT YOUR CREATION
DECISIONS NEEDING LEGAL INPUT
Make Sure you are following the law because penalties can be brutal
THE LEGAL ASPECT
In general, new people should be classified as employees unless:
1. They are explicitly temporary (eg a 3 month contract).
2. They are hired to work on a single project, with a definitive end
or deliverable
3. They are being paid for a specific result (like a deliverable),
rather than for their time
CONTRACTORS VS. EMPLOYEES
They type of business entity you choose will depend on three
primary factors: liability, taxation and record-keeping.
If you’re looking to raise venture capital, the quick answer is you
should incorporate as a C corporation. See entity type chart slide
for details.
CORPORATE ENTITY TYPE
Picking the right state can save you time and money in fees and taxes as
well as additional legal fees later if you need to change locations for business
reasons. Most investors would prefer that your company is incorporated as a
C corp in Delaware.
If your business meets any of the following criteria in a state other than your
home state, then you should check with the state government and/or a
lawyer about applying for a foreign qualification:
• Your business has a physical presence in the state
• Your business has employees in the state
• Your business accepts orders in the state
• Your business has a bank account in the state
WHERE SHOULD I INCORPORATE?
Your brand is one of your most important assets. By registering
your trademark, you receive national protection and place
everyone on notice of your rights to the trademark.
Learn more:
http://www.fr.com/Top-10-Benefits-of-Trademark-Registration-01-15-2010/
Register your trademark:
http://www.uspto.gov/trademarks/teas/
or
http://www.trademarkia.com
SHOULD I REGISTER MY TRADEMARK? HOW DO I DO IT?