A C corporation (C-corp) is a business structure typically used by larger companies or those seeking funds from investors. Many business owners who opt to organize as a C-corp do it because they are required to; for instance, if they have over 100 shareholders. Other owners choose it to attract investors, such as those who…
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How ChexSystems Impacts Your Business
ChexSystems is a reporting agency that monitors business and consumer deposit account activity. It operates similarly to credit reporting agencies when producing a credit score. If you have negative bank activity—such as bounced checks, overdrawn balances, and fraudulent or suspicious activities—these will appear on a ChexSystems report. Negative items on a report can keep you…
What Is Premises Liability Insurance Coverage?
Premises liability coverage is an insurance policy that protects business owners from claims of injuries and property damage sustained while on the business premises. By law in all states, an owner of property must make reasonable efforts to ensure that visitors are entering a safe environment. If someone gets hurt on the property, then the…
What Is Professional Development? Importance & Benefits
Professional development is the ongoing and intentional process of an individual learning and improving their knowledge, skills, and abilities in their chosen profession. Small businesses should encourage and foster professional development opportunities as it ensures that employees remain adaptable, competitive, and up-to-date in their skills after entering the workforce. Going beyond formal education, professional development…
What Is a Qualified Personal Service Corporation? Definition & Examples
A personal service corporation (PSC) is a type of C corporation (C-corp) where the owners provide service personally to people or groups. A qualified PSC is where employees providing substantially all the professional services own at least 95% of the stock. These services can be in various professional business fields, like accounting, law, counseling, and…
What Is Tap to Pay & How Does It Work?
Tap to pay is a wireless method of making payments by tapping or waving a credit or debit card or a payment device (i.e., smartphone/smartwatch) near a contactless-enabled terminal. Contactless payment uses near-field communication (NFC) technology to transfer data between the card or device and the terminal. Square was one of the first payment processors…
Employee Suspension: Ultimate Guide for Small Businesses
Employee suspension is a disciplinary action taken against an employee who may have engaged in serious misconduct or policy violations. It serves as a temporary measure to separate an employee from their work environment following wrongdoing. The suspended employee is removed from their position and prohibited from accessing company premises or engaging in work-related activities….
What Are General Liability Insurance Class Codes in Business Insurance?
General liability insurance class codes, or classification codes, are numbers that insurers use to classify a business’ industry risk based on the primary type of work it performs. Insurance companies also use general liability class codes to determine the premium, offer the correct type of coverage, and decide on any exclusions, if necessary. How General…