Group Health Insurance for Partnerships
Partnerships have several advantages over other business entities for the purposes
of establishing group health insurance for their members. If you do not have another
business entity already formed, a partnership is the least expensive to form. The
expenses of forming a partnership will include, a city business license, setting
up a business checking account, and getting a partnership agreement notarized. All
of these will generally cost less than $200 total to set up. A small price to pay
to have a properly formed business entity eligible for guaranteed issue group health
insurance! Also, partnerships avoid the payroll and DE-6 requirements required of
most other business entity forms.
Partnership Benefits
Many small businesses do not realize 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 expense of maintaining those systems. An EIN
number 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 number within 24 hours absolutely free!
Partnership Agreement
One of the requirements of a partnership is to get a notarized partnership agreement
on file. In most areas, you can find a notary at a local retail postal store or
copy center that can assist you. HealthInsurancePlus.com also offers a free sample
partnership agreement available to our small group health insurance clients. You
can contact a licensed HealthInsurancePlus.com representative to have a copy of
a sample partnership agreement sent to you at no cost!
City Business License
Besides a partnership agreement, a partnership is also going to need a city business
license with all the partners to be insured names appearing on it. It is very important
that all partners to be insured appear on the business license. Generally
most partnerships have between 2-3 members. If your business is larger, either an
LLC or Corporation may be a better business entity to establish for your group health
coverage. Most cities charge a small fee of $50-$100 dollars to get a city business
license for your business.
Business Checking Account
Lastly, a partnership needs to establish a business checking account and get business
checks. The first month's premium, payable to the insurer is required and must be
drafted off the business check. Additional premium payments following the initial
installment may be made by personal check in most cases for small group coverage.
However, you may want to check with your licensed small group expert at HealthInsurancePlus.com
before submitting payment to an insurer on a personal check.
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Small Business Group Insurance