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- Qualifying Small Business (QSB) Stock (Section 1202)
- Section 1244-Losses on Small Business Stock
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- Per Diem Rates - IRS Publication 1542 Oct 2011 for Travel Within the Continental U.S (for employers who pay a per diem allowance to employees)
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Need Some Deductions for 2011?
Don't overlook these!
Updated for 2011
Business Structures
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Workers' Compensation Insurance
State law requires all businesses with employees to carry workers' compensation insurance.
Workers' compensation insurance covers employees injured on the job, even if the employee caused the injury.
A sole proprietor is not required to be covered under workers' compensation insurance.
However, in some states, such as Maine, a sole proprietor may be permitted to opt in by purchasing an insurance policy and electing to be covered by the policy. Check your state requirements.
Workers' compensation insurance premiums vary, depending on the level of risk for injury associated with the employee's job.
For example, an employee that works with machinery or chemicals is at a higher risk of injury than an office worker, and therefore, workers' compensation insurance premiums will be higher for the employee working in the riskier environment.
Remember Al Franken!
Al Franken was fined $25,000 by the New York State Workers' Compensation Board for failing to carry workers' compensation insurance from 2002 through 2003 while employing people in his namesake company, Al Franken, Inc.
Don't make the same mistake!
Next:
Sole Proprietorships: Advantages of a Sole Proprietorship
Related Links
- What Is a Sole Proprietorship?
- Licensing Requirements
- Tax Identification Numbers
- Tax Status of a Sole Proprietor
- Estimated Taxes
- Husband and Wife As Co-Sole Proprietors
- Community Property Exception
- Community Property States
- Schedule C, Profit or Loss from Business
- More Than One Business
- Self-Employment Tax
- Taking Money Out of Your Business
- Workers' Compensation Insurance
- Advantages of a Sole Proprietorship
- Disadvantages of a Sole Proprietorship
- What is a Partnership?
- Forming a Partnership
- Types of Partnerships
- Partnerships
- Corporations
- S-corporations
- Limited Liability Company
Copyright © 2008-2012 Larry Villano. All rights reserved.