California Partnership Group Insurance
Group Health Insurance for Partnerships
Partnerships
Partnerships have several advantages over other business entities for the purpose
of establishing group health insurance for their members. A partnership is the least
expensive business entity to form. The expenses include the cost of a city business
license, creating a business checking account, and notarizing the partnership agreement.
Generally, the total costs are less than $200, and partnerships avoid the need for
payroll documentation and DE-6 forms.
Most partnerships are made up of two or three people. If you have four or more people
in your small business, a Limited Liability Corporation or regular corporation may
be more suitable for your needs.
Partnership Benefits
Many people don't know that as long as all parties to the partnership appear on
all of the required supporting documentation, partnerships avoid having to have
payroll, DE-6's, W-2's and the expense of maintaining this documentation. An Employer
Identification Number (EIN) from the IRS is still required for a business entity
seeking group health insurance. But remember, a licensed representative at HealthInsurancePlus.com
can help you get an EIN within 24 hours absolutely free!
Partnership Agreement
Healthinsuranceplus.com offers a free sample partnership agreement to our small
business clients. We'll send it to you at no cost. Once it's filled out, you'll
need to have it notarized. You can usually find a notary at a local retail postal
store or copy center.
City Business License
After notarizing the partnership agreement, you'll need to get a business license
from the city you live in. All the partners' names must appear on it. Most cities
charge between $50-100 for a business license.
Business Checking Account
Finally, the partnership must have a business checking account and business checks.
The insurer requires the first month's premium drafted on a check from the business
account. Usually, additional premium payments may be paid with a personal check
after the first premium. It's best to check with your licensed small group expert
here at HealthInsurancePlus.com before you submit a payment on a personal check.
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Small Business Group Insurance