Flow Chart for AB 1672 proof of bonified business and employees
Flow Chart – Requirements to Prove Business Eligibility – Reference – Please check with us on latest AB 1083 Requirements
Franchise Tax Board - Forms of Ownership # 1123
Franchise Tax Board – Forms of Ownership # 1123
Rules Summary - Requires Broker Password
Rules Summary – Requires Broker Password

Husband and Wife as Co-Sole Proprietors Partners:

Health Care Reform – AB 1083 pretty much has the SAME requirements to prove that your business, is a bonifide Employer, with at least one non spousal   bonified common law employee 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.

Presently… It seems that only Kaiser, Health Net & CIGNA will allow Husband and Wife as Co Sole Proprietors.  That is, without at least one employee/owner  being on the  DE 6 or 9.  Please be sure to read our introduction page on proofs required. and Sole Proprietor page.
Main Proof Page

We are NOT qualified to suggest how you structure your business, but why not do a Partnership Agreement and qualify that way?

Partnership Requirements  Usual Sole Proprietor Requirements

If you’re married and you and your spouse jointly own an unincorporated business and share in the profits and losses, you’re both partners in a partnership.

However, in CA  there is a Community Property Exception: which permits a husband and wife to be co-sole proprietors.

Excerpts from our Wholesaler on Proofs Required, for those Insurance companies that allow the spouse not to be on payroll.

Kaiser
Husband and Wife Requirements

CIGNA
Requirements

Health Net
Requirements
Summary Matrix

Community Property Exception:

If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U.S. possession, you can treat the business as either a sole proprietorship or a partnership, whichever you choose.

Community Property States:

  • Arizona
  • California
  • Idaho
  • Louisiana
  • Nevada
  • New Mexico
  • Texas
  • Washington
  • Wisconsin

irs.gov p334
loopholelewy.com

Main Proof Page

 

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