CA Franchise Tax Board’s Guide & IRS to:
Common Forms of Ownership

 

Sole Proprietorship
General Partnership
Limited Partnership

Corporation

Personal Service Corporation
Benefit Corporation
Social Purpose Corporation
Nonprofit Corporation

Limited Liability Company

Single Member Limited Liability Company
Limited Liability Company Classified as a Partnership
Limited Liability Company Classified as a Corporation

Appendices

Appendix 1: Doing Business As
Appendix 2: Commonly Used Terms

 

IRS

  • Choose a business structure. The form of business determines which income tax return a business taxpayer needs to file. The most common business structures are:
    • Sole proprietorship: An unincorporated business owned by an individual. There’s no distinction between the taxpayer and their business.
    • Partnership: An unincorporated business with ownership shared between two or more people.
    • Corporation: Also known as a C corporation. It’s a separate entity owned by shareholders.
    • S Corporation: A corporation that elects to pass corporate income, losses, deductions, and credits through to the shareholders.
    • Limited Liability Company: A business structure allowed by state statute.
  • Choose a tax year. A tax year is an annual accounting period for keeping records and reporting income and expenses. A new business owner must choose either:
    • Calendar year: 12 consecutive months beginning January 1 and ending December 31.
    • Fiscal year: 12 consecutive months ending on the last day of any month except December.
  • Apply for an employer identification number. An EIN is also called a federal tax identification number. It’s used to identify a business. Most businesses need an EIN.
  • Have all employees complete these forms:
    • Form I-9, Employment Eligibility Verification
    • Form W-4, Employee’s Withholding Allowance Certificate
  • Pay business taxes. The form of business determines what taxes must be paid and how to pay them.

Taxpayers interested in starting a business can find information for some industries on the Industries/Professions Tax Centers webpage. Each state has additional requirements for starting and operating a business. Prospective business owners should visit their state's website for info about state requirements.

More information:

What  documents do I need to show  I’m really a bonafide  Business?

Health Care Reform – AB 1083 pretty much has the SAME requirements to prove that your business, is a bonifide Employer, with bonified common law employees and owner’s who are really working 30+ hours, the same as before under AB 1672.

SHOP’s Employer application on page 2 has a nice simple matrix to show you what documents are needed for each type of business structure, propritorship, corporation, llc, etc.  Please send, (email, fax or 1st class mail)  those to us for review to help you make sure you qualify.

Since the Insurance Companies we represent are MANDATED by AB 1672 AB 1083 to write any Bonafide EmployER with 2 or more eligible employees, including husband and wife, and part timers, they require absolute proof that the business is really there and running, though in this economy a profit is not required.

On this page and those below it, are typical Requirements, by type of business structure, to show that your business, working owners who must sign a statement under penalty of recession and employees really exist.

If ALL your employees are on payroll, there is generally nothing to prove, just send your DE 6 or 9.

Please do not call and ask us “what if” questions.  Just send us all your paperwork, for the type of business structure that you have.  We can then double check if the companies will accept it.

(Kaiser) Flow Chart

SOLE PROPRIETOR LIMITED LIABILITY COMPANY (LLC)  MEMBER PARTNER  CORPORATE OFFICER

Specific Requirements by Insurance Company:

 

Excerpt of Owner in Biz Form

I attest that while I am not listed on the DE-6 or 9 wage report of this company, ALL of the following conditions are true:

1. I am a sole proprietor, partner, corporate officer or LLC manager/member of the company name indicated below; and

2. I am actively at work at this company working a minimum of 20 hours per week on a permanent and full-time basis; and

There must be at least ONE non spousal employee working 30 hours. See Insurance Code 10700 f  for more detail

3. I draw wages, dividends or other distributions from this company on a regular basis; and

4. I do not derive substantial earned income from any other employer and am not eligible for other employer-sponsored coverage; and

See Insurance Code 10700 f  for more detail

Common Ownership?

5. I have satisfied the designated waiting period before health insurance coverage is to become effective.  (Blue Cross owners work form,   all Forms & Applications)

Health Reform §2708 42 US §300gg requires that Employees be eligible within 90 days.  DOL Guidance 2012-02 national underwriter.com Health Reform Facts Q & A 249

Top

Consumer Links  

Aetna Blue Shield PacifiCareUnderwriting Agent ONLY Health Net – does not have specific requirements – Here are sample forms – Send in as much as you have – 6 week minimum filing

More details…on proof required, when there is no DE 6. or 9

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