Types of Insurance We Need:
Business Property Insurance
This insurance is to protect our companies assets. This will cover us in case of fire damage, electric surges, and other damages. It can also cover us from issues such as embezzlement.
Business Disability Insurance
This insurance will protect us from personal injuries that would prevent us from doing work. Illnesses or accidents can cause disability, and this insurance will replace our income in case this happens. This insurance will also go hand in hand with...
Workers Compensation Insurance
This protects an employee if they get hurt at the workplace, and provides them with compensation for their injury. It also protects Ascend Inc. if the employee takes legal action against them.
Unemployment Insurance
If an employee must be let go, this provides them with assistance.
Business Liability Insurance
This will protect us from financial ruin and being sued for personal liability. This includes incidents that occur at our company, during our activites, or because of our products.
NY Business License
In NY, all new businesses must register the business, and state that it is a legitimate and lawful endeavor.
EIN:
as a multiemployee business, we need to register for a taxpayer identification number (EIN). This is required for tax purposes, for state and federal, for the IRS.
Lawyer:
We will also need a lawyer who can represent us and help us organize our business. The attorney we have hired is Arthur R. Lehman, L.L.C.
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Limited Liability Companies
ReplyDeleteThere is a new business form known as a limited liability company (LLC). This business form allows the individual owners to achieve the same kind of liability they would have in a corporation, while the business organization is ignored for tax purposes. Essentially, the owners of the graphic design firm would be taxed as if they were sole proprietors or partners, even though the business organization could not qualify as an “S” corporation.
“S” corporations and LLCs are not taxable entities, and the owners must pay tax on their distributable profits and may deduct their pro rata share of business losses. It would, therefore, be important for you to determine whether your graphic design business is likely to lose money during the formative years. If so, it may be in your best interest to create an “S” corporation or an LLC. In this way, your business losses may be netted against your personal earnings from other sources.
If a corporation retains profits of up to $50,000 for purposes of expansion, it will be taxed at 15 percent on that $50,000, while sole proprietors, partners, or those who conduct business as “S” corporations or LLCs that retain any money in the business for expansion will be taxed on those retained profits at the individual’s rate of 15 to 28 percent.
There are numerous other considerations that affect the determination of what business form will best serve your interests and maximize your business security. A skilled business lawyer can assist you in making that determination and helping you realize your objectives.