California Sole Proprietorship Group Insurance
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.
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
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
Contact HealthInsurancePlus.com to get started today!
If you are a sole proprietor seeking group health coverage, contact one of our licensed
agents at HealthInsurancePlus.com 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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