The Most Important Benefits You Can Give Yourself as a Sole Proprietor
In a sole proprietorship, you are responsible and liable for your entire business. In this type of business structure, there are plenty of advantages and disadvantages.
One advantage is you can provide yourself with several benefits.
Retirement Benefits
Everyone should be preparing for retirement. You should start as early as you can so you can live comfortably when you retire. Most people get their retirement plans through their job. As a sole proprietor, you get to pick your own retirement plan and you have several options. One option is the SEP-IRA. This plan is much like a solo IRA.
You will make contributions for yourself and all your employees. If it’s just you, then you only contribute to your own plan. There will be limitations on your contributions. You can also get an individual 401K. This will also work like a typical 401K, but everything will be scaled down to accommodate just one individual.
Health Benefits
As the employer of your business, it’s your job to include a health insurance plan. This will cover you and anyone who works for you. Having health insurance protects you if you become sick or injured. It can also cover the costs of preventative care and prescriptions.
You want to have health benefits so you don’t have to pay large amounts out of pocket. When looking for plans, pay attention to the details. Many dental plans require treatments to be medically necessary for them to be covered. You want to find a plan that fits your needs.
Additional Insurance
Many health plans don’t cover all of your needs. As a sole proprietor, you should take advantage of the benefits you can receive and look for additional insurance coverage. You want to include everything you need to stay healthy and protected. Not all plans cover dental and vision insurance and you should seek coverage if needed. You can also look for coverage for mental health. Some plans can even give you access to different types of treatment including chiropractic care or even acupuncture.
As the owner of a business and/or as an employer, you have the power to provide certain benefits. You want to make sure you give yourself everything that you will need. Look into plans that give you quality coverage so you don’t need to worry about being unprotected.
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