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Sole Proprietorship, qualified joint venture, workers comp?

forceten 130 69 May 18, 2016 at 10:06 PM
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So after being with my girl 10 years I am getting married. Been running my company for 20+ years. Sole proprietorship.

As she comes on board since its allowed,she will put in the requirements for a qualified joint venture (hours working and participation in the company) is the way we will go. Both sole proprietors in the eyes of the irs 50/50 profit and losses and no partnership returns needed. Easy peasy.


Except, because of where I work, even though I'm except from workers comp as a sole proprietor with no employees, i had to get workers comp (kills me but no choice).

If you are with me so far - here is the question that I don't know the answer to. Only I need the workers comp as the area I go to needs it before I step foot on their property. She will be handling the office, I will be on the road. Once we elect qualified joint venture do they consider her now also for workers comp? or can she opt out as a sole proprietor? and me still be covered? Or will they force both of us to have workers comp.......

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#2
Quote from forceten View Post :
So after being with my girl 10 years I am getting married. Been running my company for 20+ years. Sole proprietorship.

As she comes on board since its allowed,she will put in the requirements for a qualified joint venture (hours working and participation in the company) is the way we will go. Both sole proprietors in the eyes of the irs 50/50 profit and losses and no partnership returns needed. Easy peasy.


Except, because of where I work, even though I'm except from workers comp as a sole proprietor with no employees, i had to get workers comp (kills me but no choice).

If you are with me so far - here is the question that I don't know the answer to. Only I need the workers comp as the area I go to needs it before I step foot on their property. She will be handling the office, I will be on the road. Once we elect qualified joint venture do they consider her now also for workers comp? or can she opt out as a sole proprietor? and me still be covered? Or will they force both of us to have workers comp.......

No idea on the worker's comp, but out of curiosity, why would you run a business like that as a sole prop and not form an LLC? You do realize that should something happen and you get sued all of your combined assets (home, bank accounts, etc) are vulnerable beyond the limit of whatever liability insurance you carry? To say nothing of the ability to deduct certain expenses....I would consult with a tax pro for all the issues and the tax implications related to your business. My 2 cents.
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#3
Quote from YanksIn2009 View Post :
No idea on the worker's comp, but out of curiosity, why would you run a business like that as a sole prop and not form an LLC? You do realize that should something happen and you get sued all of your combined assets (home, bank accounts, etc) are vulnerable beyond the limit of whatever liability insurance you carry? To say nothing of the ability to deduct certain expenses....I would consult with a tax pro for all the issues and the tax implications related to your business. My 2 cents.
There was no advantage to an llc for me. I looked into it with my lawyers and tax consultant 15+ years ago. Sole proprietorship is very easy to tax file. There were no real other benefits to an LLC, I can deduct the same business expenses as a SP as an LLC. The liability issue might pertain and being sued isn't as high as a worry to me as possibly some other businesses. Not because I can't be sued or there isnt risk. The opposite. My industry has so much risk I have to have very high general liability, umbrella and vehicle limits. Currently 5 million per incident or I can't operate. If I cause more than 5 million in damage or am getting sued for more than that then I think I probably deserve it. And an LLC won't protect me because it means I did something very negligent and lawyers can pierce llc's in such cases.
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#4
They told me in Ohio i needed workers comp., no way around it.
I ended up with a workers comp waiver and a workers comp certificate to give to customers.
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bulb save money by checking your insurance every 2 years (and not every 20)
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#5
Quote from stufine View Post :
They told me in Ohio i needed workers comp., no way around it.
I ended up with a workers comp waiver and a workers comp certificate to give to customers.

Ghost policy, I live in the great state of NJ, they won't do that here, I tried very hard for that........... I am allowed to waive being a sole proprietor, but no insurance company, including the state pool would allow me to waive and still have a policy for a certificate.

I should move to ohio!
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#6
Quote from YanksIn2009 View Post :
No idea on the worker's comp, but out of curiosity, why would you run a business like that as a sole prop and not form an LLC? You do realize that should something happen and you get sued all of your combined assets (home, bank accounts, etc) are vulnerable beyond the limit of whatever liability insurance you carry? To say nothing of the ability to deduct certain expenses....I would consult with a tax pro for all the issues and the tax implications related to your business. My 2 cents.
An LLC is grossly overrated in this context, though I am not a lawyer. If you're a single-person business you likely have much less protection than you think. It's very easy for the plaintiff to pierce the corporate veil and get at your personal assets because it's likely you did something wrong personally. Works much better when you have multiple parties as it can offer protection from something THEY do wrong.

Also, anyone can deduct business expenses on their taxes. You don't need an LLC, a business license, a storefront, a domain name, or anything. If you're running a legit business and trying to make money, you can deduct your expenses*.

*Within legal limits of course.
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#7
Quote from dukeblue219 View Post :
An LLC is grossly overrated in this context, though I am not a lawyer. If you're a single-person business you likely have much less protection than you think. It's very easy for the plaintiff to pierce the corporate veil and get at your personal assets because it's likely you did something wrong personally. Works much better when you have multiple parties as it can offer protection from something THEY do wrong.
I am no lawyer either, but It is not likely one did something wrong, for most people imo. Most people do not commit fraud or do something otherwise illegal when running their small business. More likely, they intermingle corporate and personal assets or do not follow the regulatory requirements of a corp that may expose them, but actual malfeasance, fraud, or criminal acts are not commonplace and not what a corp is for in this regard anyway imo. Follow the rules and keep your finances separate and there are no grounds to pierce the protection of the corporation in most instances imo. Obviously courts can interpret actions and act in ways that they see fit so nothing is 100%.

A person can fall in your store and break their leg...a contractor can make a mistake and start a fire and burn down a building or worse cause someone to get hurt. There is no criminal act and no direct malfeasance on the owner's part. In a sole prop, you would be personally exposed to any claims over and above your insurance coverage should it come to that (which it usually would not as most people will insure themselves adequately to cover typical claims in their business, but that is besides the point...the risk of such does remain more so than in an LLC).


My 2 cents.
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#8
Quote from forceten View Post :
Ghost policy, I live in the great state of NJ, they won't do that here, I tried very hard for that........... I am allowed to waive being a sole proprietor, but no insurance company, including the state pool would allow me to waive and still have a policy for a certificate.

I should move to ohio!
NJ suck b____
Think they were the first for under 18 drivers only allowed to have 1 person in car with them?

Now they are working on a bill or something to sue the person sending a txt to someone driving if they have a wreck
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#9
Quote from stufine View Post :
NJ suck b____
Think they were the first for under 18 drivers only allowed to have 1 person in car with them?

Now they are working on a bill or something to sue the person sending a txt to someone driving if they have a wreck
glad they are working on texting bill.

the driving was interrupting my texting. Course it's not their fault when their eyes are glued to the phone.
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#10
Quote from tennis4789 View Post :
glad they are working on texting bill.

the driving was interrupting my texting. Course it's not their fault when their eyes are glued to the phone.
Nothing wrong with the law currently. Enforce it.
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#11
Quote from stufine View Post :
Nothing wrong with the law currently. Enforce it.
21 year old I know. texting fighting with boyfriend. she crosses median kills mom and dad leaving 2 young kids. She's on house arrest suicide watch. I guess law is getting enforced. Telling that story someone today. they said high school student texting crosses median sees car coming jerks car off road dies. think not too uncommon story. Making example/raising awareness/cost hopefully deters/savez lives.

LLC offers little bit of protection because many people BELIEVE LLC means can't sue company.

like many things call 3 insurance agents and grt their opinions prices.
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