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Business Planning

Business Planning

Business Planning Services

At ALMEA, your Portland business planning services experts, we pride ourselves on facilitating solutions to complicated business issues that often fall well outside the realm of insurance matters. Through our relationship with BizAssure, we can get you the help and information you need, usually free of charge.

Income Continuation
The Income Continuation Benefit pays your employees a regular monthly income should they become unable to work. 
Key Person Coverage

If one of your key employees becomes unable to work, would it jeopardize your company’s ability to function? If your company is small, there is a good likelihood that a few individuals are driving the business.

If so, you may want to consider key person insurance. It is specialty insurance that pays your company should an executive or other key employee die or become disabled. The coverage provides your company with liquidity to finance the loss and move forward during the transition.

UNI 401(k) Plans
In the U.S., many employers offer 401(k) plans, but until recently, a sole proprietor could not set up their own tax deferred plan without a fair amount of complication and paperwork. That has changed, but there are still many resources on the web that will tell you that you can’t have a 401(k) without incorporating. There are potential negatives: if you plan on hiring employees later, you will want to think carefully about this because you’ll be required to expand this to include the employees. Of course anything like this should be discussed with your tax advisors before jumping in. However, if the plan fits, this is a simple way for the unincorporated sole proprietor to put aside tax-deferred money. 
Deferred Compensation Plans
A cash or deferred plan allows you to pay a bonus, and offer the employee the choice to take it as cash (subject to income tax), defer it to a trust, or take part of it and defer part of it. The employee could also choose to take a salary reduction and contribute that amount to the plan, which you can deduct, but is not included in the employee’s gross income. 
Employment Practice Liability Insurance
Employment practice liability insurance is critical for all businesses that hire employees, as it provides basic protection against claims made by employees, former employees or potential employees. It covers wrongful termination, discrimination, sexual harassment, and other allegations related to employment practices. It covers both your company and your directors and officers. Full prior acts and third party coverage may be available.
Business Overhead Insurance/E&O

If you as a business owner are disabled and unable to run your business, business overhead insurance will reimburse the business for certain overhead expenses. It differs from a personal disability insurance, which pays benefits to age 65, in that it typically pays benefits for a one to two year period.

Typically, eligible business overhead expenses are:

  • Employee salaries
  • Employment taxes and benefit costs
  • Rental payments for property and equipment
  • Principal and interest on mortgaged business property as well as property taxes
  • Accounting and legal fees
  • Business insurance expenses
  • Interest on business debts
  • General office supplies and utilities
Executive Salary Continuation Plans

When recruiting key executive employees, an executive salary continuation plan can be a differentiating benefit to offer. If the covered employee retires, dies or becomes disabled, you would continue to pay the employee or his assignee for a designated period of time.

Advantages:

  • IRC ERISA regulations are not applicable to non-qualified plans.
  • You are free to select the eligible participants and benefits are flexible.
  • Plans can be discontinued at any time, and are easy to manage.
  • The employee does not have to report taxable income until the benefits are actually received. If the plan is properly designed, you can recover all costs.
Buy-Sell Insurance
When a business owner dies, the business often dies too: not because anything wrong has been done but because nothing has been done. Buy-Sell Insurance prevents remaining owners from having to seek outside investors, continue normal operations and retain control of the company. Because the buyout amounts are agreed upon in advance, it eliminates litigation and allows the company to continue to operate or to find a suitable buyer without becoming tied up in legal issues.
Disability Buy Out Protection
This disability protection allows other owners or the business entity itself to buy out a disabled owner’s share of the business at an agreed upon price. It prevents remaining owners from having to seek outside investors, continue normal operations and retain control of the company. Because the buy out amounts are agreed upon in advance, it eliminates litigation and allows the company to continue to operate or to find a suitable buyer without becoming tied up in legal issues. 

This site is for informational purposes only and is not an offer to sell or a solicitation of any offer to buy any securities or investment advisory services which may be referenced herein. We may only offer services in states in which we have been properly registered or are exempt from registration. Therefore some of the services mentioned may not be available in your state, and if not, the information is not intended for you. ALMEA Insurance, Inc. is not a registered broker/dealer or investment advisory firm. Bill Wilson is licensed to offered securities through KMS Financial Services, Inc. ALMEA Insurance and KMS Financial Services are not affiliated and there is no common ownership or control. | Member FINRA / SIPC