Workers compensation is a must if you have employees. There are a number of ways to avoid workers compensation. While not having any employees is one of them we'll touch on that latter. Workers compensation is one of the largest bills many employers will pay. With workers comp audits and lack of planning comp insurance can equal the payroll budget.
Talking with a commercial construction contractor in Michigan I learned of a unique way to avoid paying workers compensation insurance altogether. While you, by law in Michigan, must have workers compensation if you have employees, there are many ways to get around employees.
Temp agency are one way. I don't recommend temp agencies for finding workers. I'm sure there are good temp agencies, I have just never found one myself or talked to someone else you has.
If you are and owner of a business and you have a core group of employees you spending somewhere between two and sixty percent of their wages on workers compensation cost. That means for ever dollar you could be paying sixty sense.
Best way to avoid workers compensation.
The best way to avoid workers compensation altogether is to form another company. Get a DBA, or doing business as, in another name and nine of your core group will each be part owner. Each person must be 11% owner in order to be legal. Now when you get a project your main company, of which your the sole owner, subcontracts or hires the other company, of which your also a partner.
I've personally save hundreds of thousand of dollars using this method and also save on unemployment insurances. The people who worked for my companies made more money and so did I and the company.
Avoid Paying Workers Compensation.
Another way to eliminate employees, workers compensation, cost of renting or leasing, equipment, supplies, cost of goods, and most of the other costs of goods that take away from profits, slow cash flow, and rob you as a business owner, is to start an information age business. A home based business as they are also called. Home based businesses can operate with less that two hundred dollars per month in fixed expenses and many generating incomes in excess of three hundred thousand dollars.
Joe Crawford is a successful entrepreneur and small business expert . Did you know you can start your own high profit home based business with skills you likely already have?