Buyer Beware:
There are cheap health insurance plans that claim to have all the benefits at a cheap price. Some of them do have great benefits, but some are just plain lousy. Here's how you can tell the difference:
Be Cautious of Captive Agents
Captive agents are agents that only sell for the company they are employed by. This limits them to the products sold by their employer. Most captive agents have great plans, but there are some that are selling plans with low benefit limits, and limited catastrophic coverage. If there' a plan out there that's better for you or your family, the agent may not know about it, and they sure don't have any reason to tell you about it, even if they did.
If The Benefits Seem to Good to be True They Probably Are
If the price is low and the benefits are comprehensive, you have to wonder how the insurance company is staying in business by being both the price leader and coverage front-runner. Many times the reason the coverage seems great and the price seems cheap is because the insurance company has set limits on certain benefits, limiting their risk if there are major expenses. Read the fine print before you buy and ask a lot of questions.
Research the Insurance Company
"Google" the company and find out what people are saying about them. Check with your state insurance department and find out if they are on any sort of watch list. Check the Better Business Bureau to read any complaints they've received and find out if and how they resolved them. Find out what their financial rating is through AM Best or Standard and Poors.
Your Best Free Resource
Independent local agents are not only a free resource, but they are knowledgeable about the ins and outs of the local companies. They know the plans, rates, and typically have a solid birds-eye view of your local market. Best of all, they are independent and have reason to look out for your best interests. Find an agent that works with multiple local insurance companies.
Find out how much you can save each month, while still keeping quality benefits with a reliable company. Just complete this short form and a local agent will contact you and help you get started.
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Filed under Health Insurance by on Sep 1st, 2010. Comment. 
The LLC, or Limited Liability Company, is the new entity of choice for both experienced entrepreneurs and new start-ups. The one-person corporation is being replaced by the one-memnber LLC.
An LLC combines the liability protection of a corporation with the flexibility and ease of filing as a sole proprietorship.
Every small business, even those that in the past would not have elected to incorporate, should register as an LLC. If you own rental property it is a good idea to put title to the property in an LLC. If you own more than one rental property you should have a separate LLC for each property.
One thing to keep in mind when setting up your business is that, like a corporation, an LLC should be treated as a separate legal entity. Here are some things you should do:
* If your business will have employees you will need to apply for a federal Employer Identification Number. This can be done online at http://www.irs.gov. Click on "Businesses" under "Information for", and then click on "Employer ID Numbers" under "Related Topics". A one-member LLC that does not have employees does not need a federal ID number. You can use your Social Security number.
* Open a separate checking account in the name of the LLC. Deposit all business income to this account and pay all business expenses from it. Avoid using your personal checkbook for business activity and try not to pay personal bills from the business account. If the balance in the LLC account is low, you can "loan" money to the business. Be sure to identify all such deposits as loans in the check register. Reimburse yourself for cash payments, automobile use and home-office use, and pay yourself a "drawings" by writing a check from the LLC account.
* All business leases for office or storage space and equipment should be in the name of the LLC, as well as all business insurance policies (i.e. liability, office overhead, workers' compensation).
* All store credit card accounts for business purchases (i.e. Staples, Office Max or Office Depot, Lowes or Office Depot) should be in the name of the LLC. Have a bank or American Express credit card in the name of the LLC and use it exclusively for business purposes.
* The name of the LLC should appear on all business stationery, letterhead and billhead, and all business forms and applications.
*The LLC should hold "title" to all business equipment, copyrights and trademarks. If you own "real property", such as an office building or storage facility, which is used by the business, have title held by a separate LLC.
A one-member LLC will report income and expenses on Schedule C of the owner's Form 1040. An LLC does not have to file a separate tax return, as one would for a corporation.
A loss from the LLC can be deducted against other taxable income of the owner, such as wages, interest and dividends and capital gains, to reduce Adjusted Gross Income. Any profit from the LLC will be subject to "self-employment tax", 50% of which can be claimed as an "above-the-line" deduction on Page 1 of the Form 1040. The owner may also claim an "above-the-line" deduction for qualifying health insurance premiums and contributions to a Keogh, SEP or SIMPLE self-employed pension plan.
Robert D Flach is a tax professional with 34 tax seasons of experience preparing 1040s for individuals in all walks of live. He writes THE WANDERING TAX PRO blog (http://rdftaxpro.tripod.com/weblog), the free monthly online newsletter STUFF AND SUCH ([http://rdftaxpro.tripod.com/stuffandsuch]), and the website http://www.robertdflach.net, which has a wealth of tax planning and preparation advice and information. He also writes and publishes THE FLACH REPORT, a quarterly print newsletter.
Filed under Health Insurance by on Sep 1st, 2010. Comment.