California Sole Proprietorship Group Insurance

Sole Proprietorships

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Small business owner

Sole Proprietorship

As a sole proprietor, you are eligible to form a guaranteed-issue small group health insurance plan. We specialize in helping sole proprietors and other small business owners set up group health plans for themselves and their employees.

Employment Requirements

Sole Proprietor Health-Coverage Prerequisites State of California law requires sole proprietorships to meet several criteria to qualify for guaranteed-issue health coverage. First, the plan must ensure a minimum of two adults. Second, your company must have at least one active employee besides the owner. We frequently see situations where the sole proprietor's spouse acts as an employee, but in order to qualify, they must be issued a W-2 and be listed on the payroll. If the payroll is not handled properly, or the sole proprietor uses only 1099 independent contractors, they will not qualify for guaranteed-issue health coverage.

Because this is such a difficult hurdle to overcome, many companies needing health insurance for only two or three people list themselves as partnerships.

Learn more about partnerships

DE-6 Form

If the sole proprietorship does have at least one employee with a W-2 on payroll, they may qualify for guaranteed-issue health coverage. The insurance carrier you apply with will request the DE-6 you filed with the California Employment Development Department during the last quarter of business. On rare occasions, the insurance carrier will accept a pay stub or W-2, but don't count on it.

Your Employer Identification Number EIN

The fourth requirement for sole proprietors is an Employer Identification Number issued by the Internal Revenue Service. Even if the sole proprietor does not need one for tax purposes, they will need one to qualify for guaranteed-issue health coverage.

Contact to get started today!

If you are a sole proprietor seeking group health coverage, contact one of our licensed agents at to discuss your options in greater detail. Our services are completely free to you!

The Difference Between Group and Individual Healthcare Insurance

Insurance is an unwelcome expense and for most people, the process involves getting the best cover for the lowest premium possible. One of the most frequently asked questions is about the key differences between individual and group healthcare insurance and which one is better.

Learn more about the differences

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