What Is An LLC And How Does It Work?

There are now over 32 million businesses across the United States.

Due to the benefits owners get through asset protection, a good chunk of these businesses exist as Limited Liability Companies. While there are several other options on the legal structure you can pick for your business, what you settle on depends on your objectives.

If you are asking yourself, “What is an LLC and how does it work?” then here is a guide to help you understand this legal business structure better.


What Is an LLC and How Does It Work?

A Limited liability company is a business structure created by state law that exists as a legal entity that is distinct from its owners.

An LLC combines aspects of a sole proprietorship, a corporation, and partnership to create a structure that ensures the owners are not personally liable for its liabilities.

You can form an LLC to own certain assets (for example, real estate, houses, boats, vehicles, etc.) or use it to run a business.

The owners of an LLC are known as members. You can have a Single-Member LLC that’s owned by one person or a Multi-Member LLC owned by two or more people.

Once you pay a filing fee and successfully file the LLC formation documents with your state, you can become a member.

An LLC exists as a separate entity from its owners. As such, in the eyes of the law, you as the owner are not the same as the LLC. That is essential because it helps manage asset protection and is arguably one of the most significant benefits of an LLC.

For example, let's say you are a member of an LLC and happen to accrue a business line of credit worth $50,000,000 that goes unpaid beyond its tenor. When the lender decides to take legal action to recover their money, they will not come for your personal assets.

Instead, they will file a case against the LLC, and the entity will have to use its assets to repay the loan. In that sense, what you own as an individual remains safe.

When you own place assets or a business under an LLC, the ownership moves from you to the entity. Therefore, all legal documentation will show that the owner of the asset or business is the LLC.


How Do You Form an LLC?

When forming an LLC, you begin by selecting a business name for it. Don't forget that the name you choose must be in line with your state’s rules.

Once you have the name, you must prepare the Articles of Organization (known as Certificate of Formation or Organization in some states). You can file the documentation with the Secretary of State by mail or through some of the best online LLC formation service providers.

If you plan to conduct business in another state other than the one the LLC’s registered in, you will need to register in the state of interest. Just like when registering with your state, you will also need to appoint a registered agent for your LLC in the state you plan to operate in.

There are several regulatory and tax requirements you need to be aware of when forming an LLC. These are:

Employer Identification Number: The EIN is mandatory for Multi-Member LLCs, even if you don't plan on hiring any employees. In the case of a Single-Member LLC, an EIN only becomes necessary when you want to hire employees or choose to be taxed as a corporation.

Sales and Employer Taxes: There are cases where you will need to pay sales and/or employer taxes in LLCs. It is wise to consult a tax professional during the registration stage to discover what obligation you’ll be responsible for.

Business Licenses: Depending on your area of operation, there are licenses you may need to acquire from the state or local authorities. Consult the necessary state agencies to confirm all the licenses you need to get, so your LLC becomes compliant.

In many states, once your LLC is operational, you will need to file annual reports along with a filing fee.


How Do LLC Owners Get Paid?

When forming an LLC, every owner puts in something of value that will help run the organization. Typically, this is money or other assets.

Every member's contribution goes to their capital account and is a part of the total capital available. The capital account will show any changes in the LLC’s ownership.

Your capital account begins with your capital contribution, grows with your potion of the business income, and decreases due to withdrawals or business losses.

When the LLC makes a profit, your share goes into your capital account (as do any losses). You get paid out of your share of the profits through a business check, which reduces the amount in your capital account. That is referred to as a draw or distribution.


Do LLC Owners Get Taxed?

Since you are an owner and not an employee, you don't receive a salary. As such, what you get paid isn't directly taxed like a salary would be. The tax you pay is tied directly to your share of the profits or losses that the LLC makes.

However, this tax applies to your entire profit or loss portion, whether you withdraw it or not. Let's say you earn $10,000 in profits and only withdraw $2,000 from your capital account. You will still need to pay tax on the entire $10,000.

If you are a Single-Member LLC owner, taxation happens slightly differently. The Internal Revenue Service (IRS) treats all Single-Member LLCs as sole proprietorships. Thus, any losses or profits the LLC makes pass on to you.

Consequently, you won’t need to file a separate tax return for the LLC, as in the case of Multi-Member LLCs. That is because all the LLC's income or losses will be reported on your personal federal tax return.


Protect Yourself From Personal Liability With an LLC

Many business owners are partial to forming an LLC because it protects their personal assets from any liabilities the business incurs. An LLC comes with other requirements you also have to pay attention to for it to succeed. Before forming one, ask yourself, “What is an LLC and how does it work?” To get a more in-depth understanding of how to operate under such a legal structure.

Are you looking for more ideas on how to start and run a business? Check out more of our company content for top tips that can make you a better entrepreneur.

4 Tips on How to Choose Insurance Companies

The number of uninsured Americans has risen by over 3 million people in the past few years. 

It doesn't matter whether you need health insurance, car insurance, business insurance, or even a more specialized insurance plan. Learning how to choose insurance companies you can trust to exceed your expectations is essential. 

What do you need to know to choose the best insurance provider and policy? 

Read on to find out how to choose insurance policies right for your company.


1. Get to Know Your Communication Options

What is one of the most important things that many people overlook when learning how to choose insurance? 

The level and ease of communication an insurance company provides. 

First, determine if they are able to clearly answer your policy questions in terms you can actually understand. Next, get to know available communication platforms.

Can you pay your bills or report a claim online? Does the company prefer to communicate by email or over the phone? How easy is it to get an in-person appointment if needed? 

Do you feel like the insurance provider is giving you advice specifically tailored to your needs, or are they rushing you through your consultation and giving you advice that is too general to be helpful?


2. Evaluate the Insurer's Strength 

When you are ready to find an insurance policy that you feel secure in, you will need to do some serious research on the overall financial strength and history of the insurance company itself. 

You need to feel secure that, even in recessions and other financial crises, the company can still pay out claims. 

We strongly suggest that you check out the insurer ratings database to ensure you choose the best and strongest insurance provider. 


3. Understand Coverage Options

You will also need to ensure the company actually provides insurance coverage that suits your personal or professional needs. 

For example, if you are in construction, you may need a provider that offers equipment insurance. If you work in tech, find a technology insurance company that understand the analytical nature of your insurance needs. Using online services can help you quickly generate quotes, like for the top auto insurance companies to get low cost and full coverage policies.

Disability insurance, life insurance, and homeowner's insurance are all common policies. Any quality insurance company should provide these options.


4. Ask About Discounts

Yes, you can get discounts on insurance like any other service. 

For example, if you have a good driving record, own multiple vehicles, and even if you have a strong credit history, you may be entitled to special discounts. 

The same thing goes if you have a strong academic record, a newer home, or worth within a specialized industry. You can often negotiate the amount of your monthly payment directly with an insurance agent. 


You've Mastered How to Choose Insurance Companies You Can Count On

Learning how to choose insurance policies and providers is never something you should rush through. 

Instead, get insurance quotes from multiple companies, negotiate and ask for discounts, and be sure you have a clear understanding of the cost and specific coverage the insurance policy offers. 

Looking to learn how to save money on everyday items so you can afford to invest in a better insurance policy? Check out more Frugal Finance advice on our Insurance page.

Should Dead Trees Be Cut Down?

We are especially blessed here in the Pacific Northwest by the natural wonders and verdant shades of green around us. Trees in particular offer an aesthetic in the area that can’t be beat. They also have various other benefits besides looking good. Tree roots help prevent soil creep, and they take up carbon. They offer shade from the searing summer sun and can be homes to numerous creatures. 

They are an integral part of our lives, but there is also a point at which their life cycle ends and they go from beneficial to being a burden or even dangerous. When they become infected and there is no way to expel the pest or disease, or when they start to die, the question becomes: should dead trees be cut down? 

The short answer is yes, but there are some things you should look at before you call to have your dead tree removed. Ideally you should get the expert tree service in fort pierce for your safe and professional dead tree removal.

Signs Of Stress, Stunted Growth, And Sickness 

When looking into whether your tree is really dead, it may take a more seasoned eye to be sure. It might look dead, but it may also just be dormant. Perhaps only part of the tree is dead, and it can be pruned and revitalized again. 

If there is extra growth near the base of your tree, say a fungus, it is important to take a deeper look at what is going on with the tree. Moss is natural so there is nothing to worry about there, and lichen growth may just mean your tree is growing slowly, not that it is dead or dying. 

A tree’s roots can be a great indicator of the overall health of the tree. If they are growing along the surface or struggling to grow deeper, it may mean the tree is having a hard time navigating the land. While this may not be an immediate problem, keep in mind that trees with shallow roots are more susceptible to issues like strong weather. At that point, there may be a need for removal. 

A scratch test won’t tell you everything and may not be the easiest way to determine how your tree is doing, but if there is green underneath the bark, it is safe to assume that it is still alive, even if it is dormant. 

Lastly, another sign of stress to look for may be offshoots that grow closer to the base of the trunk. If you have these growing off your tree, it may be time to call in someone to do a diagnostic test. 

Risks Of A Dead Tree 

Pests May Be Looking To Come Over 

Pests enjoy expanding their homestead, and a dead tree can be an ideal locale. This is especially true with wood-boring insects like termites and carpenter ants. They multiply quickly, which could even pose a threat to other trees and plants in your yard or on your property. Critters like rats will take up residence in a dead tree and then use their new space as a home base from which to seek out a food source. Your home may seem like an ideal situation for their new digs, and they may even try to expand their infiltration. 

The Tree Could Topple Over 

While trees with deep roots can sometimes withstand gale-force winds, a dead tree doesn’t stand a chance. The risk of falling over is quite high and plays a large part in the “when and why” of taking action and having it removed. Because we can’t see everything that is happening with a dead tree, either under the ground or inside of it, there is no telling what sort of structural integrity it has. When that is compromised, you are not only risking damages to a roof, car, fence, or other parts of your property, but you are risking branches or the tree falling on top of people or animals. Should something like that happen, you will be liable for covering the costs of damage, both in terms of repairs and medical bills. 

It Might Be Cheaper To Remove It Now

Because the tree is dead and there are uncertainties about its ability to remain standing, it’s best to cut it down or have it removed before there are any accidents. Having to cover the repair costs for someone whose car was damaged when a rogue branch took off flying could be more expensive in the long run than just having it taken care of from the outset. When you know it’s going to have to go at some point, you can prevent a lot of headaches by taking action now. 

A Diseased Tree Risks The Lives Of Others 

If the culprit for the death of the tree was a disease, then even keeping the tree on your property could mean the disease will infect other trees or plants in your yard. For example, if mold or mildew starts to take hold on the tree, then there is a direct risk of contamination and infection for the other trees and flora. Don’t underestimate the power of one sick or dead tree. 

While Live Trees Are Glorious And Green, Dead Ones Just Aren’t Very Pretty 

This is an especially important point if you have or will soon have your house on the market. In addition to being an eyesore, there are potential liabilities of having a dead tree on your property. You certainly don’t want prospective buyers walking away from an open house discussing the “dead tree property.” Taking action sooner rather than later makes a lot of sense, especially if you want to keep your home’s value up and keep it looking appealing. 

Take Care Of Your Trees

The arbor experts at Mr. Tree have nearly two decades of experience in tree removal on residential and commercial properties and can provide guidance with your trees. If you are asking yourself if the dead trees should be cut down, then they can provide assistance in more than just the diagnostics of the tree. They can set a plan in motion for resolving the issue at hand with your dying or dead trees in need of removal.

How To Hire Product Liability Attorneys

Every customer has all the right to expect the purchased products to work for their purposes. Due to the defects of the purchased products, make sure not to be hurt badly or suffer from severe injuries. One should have confidence that the products won't hurt during the intended purpose. The product manufacturers should be careful in testing it before sending it to the market, and they should confirm with a 100% Quality Assurance. 

At times the defective products are sold to the customers, and it harms them in a physically and mentally damaging way. A consumer has legal rights for the claims that happen during unexpected harm on using the product. A Lake Charles product liability attorney will help you to go through this process. You have the right to claim compensation for any defective product that harms you or your family members. With 30+ years of experience, Lundy, Lundy, Soileau, and South's legal lawyers have a history of claiming more than 100 million dollars for the affected clients and also gives legal advice. Lake Charles product liability attorney team has handled 1000+ cases in Louisiana, and our firm is one of the best in and around the United States. 

What Is A Product Liability Claim? 

As a customer, we trust the products we purchase in the United States since it has been tested by the manufacturers before it comes to the market. Despite these regulations, some defective products come to the market for sale. Unexpected harm comes when using the defective product at times. The victim or their family members get compensation from the company by pursuing the product liability claim on such an occasion. Only experienced attorneys like Lake Charles product liability attorneys can understand your pain and evaluate the situation correctly and guide you to get the compensation. The area of law that claims compensation for injuries in the US is referred to as "torts". 

There are three ways to find the defective product as follows, 

● Design defect: It is the defect that inherits from the design of the product. All the products that have been made from the same design and for sure will be a defective one. 

● Manufacturing defect: It is the defect that occurs during the manufacturing stage of the product; not all the products will be defective. 

● Failure to warn defect: Some intended purpose, some products cannot be made safe. Those products should have a warning sign to indicate the customers for their safety. 

Your Rights For A Product Defect Injury 

If the product was used for the purpose it was made for and caused you or your family any harm; you can contact a Lake Charles product liability attorney in the US. The damage that is caused due to a defective product can recover include: 

● Medical costs incurred during usage of the dysfunctional product 
● Emotional distress 
● Loss of wages 
● Physical pain and suffering due to the defective product 
● Death damages like funeral expenses, loss of companionship and loss of wages 

Some examples of the product manufacturing negligence According to the Lake Charles product liability law firm, they specialize in law against some manufacturers unit include, 

● High rollover rate automobiles 
● Defective auto airbags 
● Cell phone radiation 
● Hip replacement equipment defectivity 
● Unsafe manufacturing machinery 
● Cancer-causing unsafe weed killers 

As the examples of product manufacturing negligence. 

Reasons To Hire Our Product Liability Attorney In Lake Charles 

Here are four important reasons to consider if you have a personal injury from defective products before you think of accepting the compensation or taking it to court. 

● Lake Charles' product liability attorney doesn't charge you any amount for an initial consultation. You can get legal advice and documentation preparation from our experts with free of cost. 

● If you lose the case, our experts won't remit the fees. It is not sure that everyone receives compensation. 

● Usually, the insurance company will provide you the least amount of money for the damage caused. But our attorneys will get every needed penny from the company. 

● By hiring our product liability attorney, you can have peace of mind without having to worry about the incurring costs. 

By contacting our well experienced Lake Charles product liability attorneys, you can rest assure that every defective product related issue is fixed. You will have peace of mind, knowing that you are in safe hands legally.

5 Reasons Why You Need Life Insurance

Death comes for everyone, but you can prepare for this inevitability with an excellent life insurance policy.

Life insurance is an essential component of everyone's financial portfolio. If you don't have life insurance you may be exposing your loved ones to financial risk.

You may be thinking, "why do I need life insurance?" Keep reading for our top five reasons to invest in life insurance.


Life Insurance is Relatively Inexpensive, Especially if You Are Young

Life insurance policies are relatively inexpensive, especially compared to their several $100,000 payouts. The average 20-year policy costs well under $1,000 annually, depending on your age and level of coverage.

Locking in a low rate now will save you money in the long run. If you are married or plan to have kids, you want to secure their future if you perish. Life insurance is fairly inexpensive when you consider the peace of mind it provides. To learn more about life insurance costs, refer to a decreasing term calculator.


Pay Off Debt

It may surprise you to learn that your debt doesn't always die with you. That is right. After you pass away, some previous debts may pass along to your next of kin or spouse / partner.

Life Insurance can pay off outstanding debts, like student loans and car payments. Life insurance can also cover your burial and funeral expenses.

You can't prevent the emotional impact your death will have on your family. However, you can minimize your death's impact by investing in life insurance.


Replace Lost Income

Now 40 percent of American families wouldn't be able to afford an unexpected expense of $400. Your family depends on the money you make. How long would they be able to pay the bills without your financial contributions?

Life insurance protects your family from financial ruin if you die unexpectedly. Check out your local insurer for a competitive policy that will protect your family's financial future.


Secure Your Twilight Years

It is a common misconception that life insurance yields financial benefits after your death. If you structure your policy carefully, you can reap rewards from your life insurance while you are still alive.

Hybrid life insurance policies cover long-term care in addition to the normal death benefits. This can help you fund medical care as you age, and prevent your children from taking over the financial obligation of your care. Alongside these hybrid policies, considering long term care insurance is recommended as it specifically covers the cost of long-term care services, which can include in-home care, nursing home care, or assisted living facilities. These services are typically not covered by traditional health insurance or Medicare and can be financially overwhelming.


Permanent Policies Build Value 

Permanent life insurance policies build cash value over time on top of your death benefits.

You can borrow the cash value from your life insurance policy to pay for education or a down payment for a home. This is an attractive option because interest rates tend to be very low when you borrow from your insurance's cash value.

Just make sure you pay it back so your beneficiaries are still financially secure after you pass. 


Why Do I Need Life Insurance? To Protect Your Family's Future

Think about the people you love, then ask yourself, "why do I need life insurance?" You want to protect the people you love after your gone! Life insurance benefits prevent your death from becoming a financial disaster for the people around you.

When you invest in a life insurance policy you have peace of mind knowing any expenses related to your death are covered. Get the process started today for additional family financial protection.

Top Tips On Travel Health Insurance Coverage

Many things can go wrong while you are on vacation, or even a few days before you are scheduled to depart for the vacation. While we have written many articles on how to stay healthy while traveling, unfortunately there is always the possibility that you may become sick just before the day you are to fly on an expensive prepaid vacation and you would probably have no option but to lose your money. 

Or a traveler may fall sick while on the vacation and may have to unceremoniously turn back. All this means not only a loss of money but also the emotional hang-up that you missed your chance to be on a lovely vacation. 

This is where travel health insurance can provide some consolation. This insurance is designed in order to provide coverage for unexpected monetary losses related with vacations. However, all travel health insurances aren’t created alike, so you must know what they are before going out to purchase one. 

Simply put, a travel health insurance is an insurance policy which covers for unexpected expenses that might occur while on vacation or shortly prior to the vacation. These unexpected expenses might or might not be related to health. Needless to say, travel health insurances tend to be quite expensive and so the buyer must carefully plan out what options they require or not. 

Due to the expensive nature of travel health insurance, it is quite unwise to use one if you are planning a short flight and will be back within a few days. A travel health insurance could make more sense if the vacations is going to last for several days and you have paid a very heavy sum – read several thousands of dollars – for the vacation. 

There are many types of streamlines coverage plans that travel health insurances provide. So spend time to see which one will suit you the best. One of the foremost things to check is whether the plan will be covering you for the entire time you are on vacation or not. Some plans cover only the journey aspect of the vacation and do not cover the people after they land or before they begin their journey back home. 

Some other plans may not cover the journey, but only the time when the person lives at the holiday destination. Also decide if you need people traveling with you covered also. A travel health policy is useful only if it covers the medical expenses; so that should be your primary deciding factor. 

Traveling health insurance becomes all the more important if you are traveling to an underdeveloped or developing nation where health facilities are limited. If any medical emergency were to occur there, then you would need to be transported to an advanced country with the proper facilities. This would incur heavy expenditure for travelers. 

For people who vacation a lot, a single travel health insurance could be quite economical. Such people could go in for multi-trip travel health insurance policies. These policies would cover a specified number of trips within a specified time frame. A multi-trip travel health insurance makes more monetary sense than several individual policies. 

Before signing on the dotted line, make sure that you are getting what you want. This means, all the points you need covered should be included in the plan. All leading cruise lines, travel agents and independent insurance agents provide travel health insurances. But you must scour the market for better deals since prices on these policies could vary very vastly. Independent brokers would sell the policy for higher prices (since their brokerages would be included), but they are safer. Big travel companies may not honor their policies if they go bankrupt. 

If you are going on a big vacation, consider the travel health insurance policies carefully. This is not just more money you will be putting into the vacation, but this is money that would ensure you are covered should any emergency happen during your trip. 

If you are spending thousands of dollars on a cruise, then spending a few hundred more to safeguard the cruise is quite certainly a good idea. It is the frugal and healthy option to get insured for your travels!

Understanding The Basics Of Contractor Insurance Requirements

If you are working as a contractor, then you most likely already understand the significance of getting properly insured. You might have read up on this topic, and you might have figured out already just how important it is for you to get protected in certain situations. There is, however, a chance that you still don’t quite understand all of this and that you are not sure of the actual contractor insurance requirements that you will have to meet. 

In different words, you might not know what your policy should contain, and that could lead to getting poor coverage. Well, you definitely need to do some learning before you get covered, because you don’t want to wind up not meeting the necessary requirements. After all, you want to do everything in accordance with the law, which is why you are probably ready to go through the learning process and check all of this thoroughly out. 

This source can tell you a lot more about the different types of insurance you might need: https://www.forbes.com/advisor/business-insurance/contractors-insurance/ 

What Is Contractor Insurance? 

Now, before I get to talking about those requirements that you want to know about, I need to be absolutely sure that you know what contractor insurance actually is in the first place. This is why I am first going to address that topic and make this concept perfectly clear to you. As you will quickly see, there is nothing that complicated about it and I’m sure that you will get the hang of it in no time. 

Contractor insurance is, as the name says, insurance that will protect you, as a contractor, against various types of claims and unpredictable situations. It is not difficult for people to understand what this actually is, but there is one thing that some individuals might not be that sure about. In the simplest words possible, some people assume that all contractors get the same coverage. 

That, however, is not true, and this is the most significant thing to remember about contractor insurance. Basically, your specific policy probably won’t look the same as the policy of a different contractor. This is because your businesses are different, and you need to get the perfect coverage for your specific situation, instead of simply copying and pasting something that someone else has done. Copying and pasting don’t really work in the world of insurance policies. 

What Are The Requirements? 

The above should have made it clear that there are some specific requirements that you will need to take into account when getting your policy and that those will be different for different companies. Yet, we cannot fail to mention that there are some general requirements that most contractors will have to meet, and I am now going to tell you about those. So, before you decide to purchase insurance online, which is definitely a great opportunity as it makes things easier for most people, I would advise you to first check those requirements out in detail. 

General liability insurance is the first thing that you will absolutely need to have on your policy. In different words, that is the first requirement that you will need to consider. In addition to that, there is also the employers’ liability coverage, as well as the workers’ compensation. You should check the laws in your actual state to consider the amounts that are necessary for all of these categories. 

As I have already explained, there are some other things that the policy should cover, but those will depend on the type of your business and your projects. How can you, though, make sure to get the perfect coverage if you don’t know what it is that your policy should include? In other words, how can you be sure that you are meeting those project-specific requirements.

Contact Professionals To Check Project Specific Requirements 

Well, the answer to that question is pretty easy. While you might not know how to get the perfect coverage, there are professionals out there that will definitely know that. Thus, your task is to find and contact the perfect construction or contracting professionals, let them know what you need and then let them tell you what your policy has to include. Working with these experts will make everything a lot easier when building and insuring projects.

Tips To Find The Best Commercial Insurance

Atlantic Charter - Tips for Finding Good Commercial Insurance in Portsmouth

Purchasing insurance for a business can be a difficult task. Conditions, definitions, exclusions, coverage, and endorsements can all be confusing and give you a tough time finding the right policy for protection. Getting insurance for a company isn't exactly an exciting experience due to the costs attached. However, consider what your life would look like if you lose your possessions or work equipment to unforeseen circumstances and you are unable to replace them because there’s no insurance. 

With so many commercial insurance companies to select from, it can be difficult to know where to start. There are other aspects to consider, but many consumers focus solely on the cost of insurance and read internet reviews. The truth is that these two metrics only provide a portion of the picture and may not be the most effective way to determine which insurer firm is right for you. Choosing the best company isn’t always a stroll in the park. However, with the right guide handy, you will find a reliable option. If you need tips on what to look out for when choosing a good insurance company, you can visit Atlantic Charter Commercial Insurance in Portsmouth for some help with selecting top policy coverage. 

Tips To Finding A Good Insurance Company 

Here are some tips to guide you on finding the right insurance provider: 

Financial Stability 

An insurance company's financial stability should be considered when making a decision because it demonstrates how well it performs in the bigger market and whether you can rely on it in the future. In order to pay claims, insurance companies must have sufficient assets. You can use third-party review sites to get this information. 

Ease of Transactions 

You certainly want a company that you can easily transact with without hassles. Some companies are flexible with their transactions while others are not. It is important that you go for one that has the capacity to serve your needs at the most convenient time. Some of the features that make for easy transactions include online claim reporting, online bill pay, 24/7 customer service, billing questions, policy changes, and active social media platforms. 

Read Reviews 

Reviews provide an avenue for customers of a business to express their views about their services. With this platform, you can easily access comments from old clients who are either satisfied or dissatisfied with the services of the insurer company. It is important that you gauge these comments to decipher if the company has the capacity to meet your needs. If you find that the reviews are filled with only positive comments about the insurer, then there’s a possibility that they may have been manipulated to suit a narrative. In this instance, you will have to check properly to see through the lies. You can also find tips to help you identify fake reviews in this article. 

Available Discounts 

Several insurance firms offer discounts to clients. It is important that you inquire about the discounts available for your peculiar situation. If there are no discounts, find out why and if there are makeups for this. 

Benefits Of Insurance 

Here are some benefits of getting this insurance policy cover: 

Managing Cash Flow 

Using personal or office resources to offset bills from losses can affect cash flow management. However, with an active insurance policy, you can easily face any unpredicted circumstance with ease, knowing that your provider will offset the bills if an insured event occurs. You don't want unexpected acts, accidents, or events to interrupt a profitable business venture.

Protects Against The Unknown 

This is arguably the important aspect of this policy. Under the policy, the insured person or organization is protected against losses. Purchasing the appropriate policy is a good method to protect yourself from losses caused by a variety of life's uncertainties. 

It Is In Accordance With The Law 

The majority of insurance plans are legal contracts. If you own a business that uses machinery, such as a trucking company or a construction company, you must have insurance coverage. You can choose to cover all of your industry's equipment or just a few. If you fail to do this, you could be attracting some sanctions from regulatory agencies. 

Efficient Utilization Of Insured Resources 

You do not have to pay a considerable amount of money for the financial implication of a covered risk or event. This enables allows you to spend your financial resources more effectively. 

Credit Support 

Insurance also provides support for the insured's credit, which is an uncommon but crucial advantage. It makes it easier for businesses and individuals to borrow money from financial institutions by verifying that the lender will be settled if the collateral is damaged or lost to an insured event. This decreases the lender's risk of the borrower defaulting on the loan. 

Investment Capital 

Insurance serves as a source of investment capital. Providers collect premiums in advance, invest them in a variety of investments, and use the returns to pay claims when necessary. If you are interested in some of the investments your company may consider, you can find them here: https://www.forbes.com/ 

Commercial Insurance Conclusion 

Learning how this policy works takes time and effort, but it is critical to understand the fundamentals in order to obtain the coverage you require. Being aware of what is available and how it works can have a significant impact on the cost of insurance policies coverage. You will be able to choose the best policies to secure your lifestyle, possessions, and property once you have gained this knowledge. 

This article highlighted some tips to help you find a good company for insurance coverage. Feel free to check them out for policy information. You can also share with others who may need the information to protect their company from liability as well.

Things To Consider When Buying Life Insurance

One of the most essential decisions that you can make in your life is to purchase life insurance. This will not only protect you against critical illnesses, but your loved ones will also have some money left behind when they need it the most. 

Know that there are several factors to consider when it comes to purchasing life insurance. You can click here to know more about the services or contact an advisor for more tips and coverage information. Meanwhile, the following are some factors to consider when you purchase life insurance. 

1. Decide On The Years You’ll Need The Coverage 

Term life insurance packages are designed to last for a certain period. There’s also the universal life or whole life that will cover you for a lifetime. If you only need protection while the kids are growing and want more affordable premiums, then term life insurance is better for you. You should also consider the length of your mortgage and your life span. Your spouse may need help with the mortgage payments and income replacement that will sustain their needs. 

2. Calculate The Amount You Need 

One of the ways to determine the costs more accurately is to identify your DIME. The DIME stands for the following: 

Debts 

These are the loans that you’ve incurred, including student debts, mortgage, credit cards, loans with private lenders, car payments, and a lot more. Know more about the amount of insurance that you need and it’s relation to DIME in this link here: https://www.guardianlife.com/life-insurance/how-much-life-insurance-do-you-need. 

Income Replacement 

This is where you and your spouse’s life expectancies come into play. Your dependents may need income replacement as they are growing. And this is helpful when they are still young. 

Mortality 

This will include expenses for burials and funerals as well as specific wishes that you may have. 

Education 

Childcare, education, college tuition, and other expenses related to this can be costly. If your kids are still in daycare, you may want an income to pay for these costs while your spouse works. 

3. Think About Other Goals And Objectives 

Some permanent life policies are often used as a form of savings. Many of these have a cash value that tends to increase over time. A set fund is invested in the stock market, and you can get something if you have outlived your policy. 

Many of these policies have face amounts that contain the death benefit. The cash value will grow in a tax-deferred way, similar to a tuition savings plan or retirement account. It’s always a good idea to include life insurance in your portfolio as one of your nest eggs when you retire. 

4. Naming Of Beneficiaries 

Your beneficiaries may be one of your family members who will receive the aid in case of unexpected death. They will receive your proceeds, but it’s essential to know that naming a minor child may not make them eligible to receive the funds. This may also have tax implications when it comes to your estate. 

In case the unexpected happens, it’s important to have a formal plan in place on who you wish to be the receiver of the cash. Speak to your family and consult an independent agent in choosing the best beneficiaries for your insurance. 

Who Specifically Needs Insurance? 

Insurance is a helpful tool financially and knowing that buying specific policies won’t make much sense to everyone. If you don’t have any dependents, you’re single, and you have many assets to cover your attorney fees, estate, and funeral, then there’s no need for these packages. This can also apply to people who have dependents, but they have more than enough assets to provide for their families in case of their death. 

Suppose you’re the breadwinner of the family and the provider with a significant amount of debt weighing on your shoulders. In that case, the insurance can immensely help your loved ones have money to cover your hospital bills. You’re essentially taking care of your family if you have co signed debts, have businesses, or an outstanding student loan that you’re repaying. 

Read the fine print and keep in mind that not all life insurance policies have the same coverage. This might not cover long-term nursing care or disability benefits, but you can add them as riders if you want to be more secure.

What Does a Financial Risk Manager Actually Do?

Feeling a little stuck in your job? If you have a finance background, you might have started looking at your options and run across financial risk manager as an option. 

But what does a financial risk manager do? What kind of job is that and is it right for you? 

If your finance job allows you to focus on numbers and analysis rather than just accounting, this might be the field for you. It’s a growing career option with solid earning potential that can take you all over the world, but it isn’t the type of job for everyone. 

Before you decide, you need to understand what risk management means, how to become an FRM, and what the job might entail. 

What Is Financial Risk Management? 

The field of financial risk management plays a huge role in the success of banks and investment firms. Advanced analytics, better modeling, and machine learning are helping these organizations improve their bottom lines because they can choose the kinds of risk they’re willing to take on. 

Financial risk management is the process of identifying those risks, analyzing them, and coming up with plans to handle them to the company’s advantage. It’s a large field because almost everything a company does in spending or collecting money has some type of risk attached. The major ones you might deal with in an FRM job would be: 

• Credit risk 

• Liquidity risk 

• Operational risk 

• Model risk 

• Portfolio risk 

• Fixed-income risk 

• Derivatives risk 

• Commodity risk 

• Market risk 

• Regulatory risk 

While the type of risk might vary depending on whether the job is at a bank, investment house, or insurance company, each involves an analysis of potential risks and developing a plan for them. 

What Is an FRM? 

If you want to work as a professional risk manager, there is a special credential you can pursue — the Financial Risk Manager or FRM. An FRM isn’t required to work as a risk manager, but it does demonstrate you meet certain qualifications. It’s considered comparable to an MBA, though much more narrow in focus. 

The Global Association of Risk Professionals conducts the exams and awards the designation. 

A finance professional with FRM certification specializes in understanding risk and how it might affect a company’s business operations. The FRM evaluates the scope of the risk and how to price the risk for consideration in decision making. 

To earn your FRM, you must pass two sets of examinations and work full-time in a financial risk position for at least two years. At that time, you can apply for the designation from GARP. 

Studying for and passing the FRM exams can help broaden your knowledge and strengthen your skillset. Earning the designation helps you stand out in a crowd of applicants and makes you part of a well-connected community of fellow FRMs. Since the credential is recognized in major markets worldwide, it can open doors no matter where you choose to work and live. 

Part of what makes the FRM so prized is that the exams are quite difficult and the knowledge tested is very specific to risk. Only about half the persons taking the tests pass each time, so you are in an elite group when you do. 

What Does an FRM Do? 

If you happen to get one of the prized financial risk manager jobs out there, just what will you be doing? 

The financial risk manager identifies threats to the financial health of a business, and these types of jobs tend to fall into or encompass two distinct parts. First is the management role, where you develop rules and guidelines and ensure they’re followed. The second is the analysis role, where you determine what the risks are and how much impact they might have. 

According to GARP, nine of the top 10 FRM recruiters and hiring companies are banks. Common job titles for anyone who has earned the FRM designation might include: 

• Risk analyst 

• Risk manager 

• Credit risk analyst 

• Market risk analyst 

• Regulatory risk analysis 

• Operational risk manager 

• Chief risk officer 

The financial risk manager is the person at an organization that figures out how much and what type of financial risk the company is comfortable with. The FRM develops the rules, processes, and guidelines that apply that risk level to any activities the company undertakes, specifically those related to financial risk. 

The FRM is tasked with looking ahead to identify potential threats and make suggestions on how to avoid or mitigate those risks. They’re involved in the decision-making process by providing risk reports that allow the company to properly evaluate the risk in any choice or path. 

How Is FRM Different From CFA? 

If you’re starting to research a financial risk manager career, you might have also seen information about a Chartered Financial Analyst designation. How does it differ from FRM, and does it matter which one you have if you plan to pursue a career in financial risk management? 

To boil it down to a simple definition, the CFA is more generalist and good for a wide range of financial jobs. The FRM is highly specialized and puts more emphasis on quantitative analysis and risk. If you know you want to work in risk management and not just any financial job, the FRM is the way to go. 

Is Becoming a Financial Risk Manager For You? 

Once you earn your certification, there are hundreds of types of roles a financial risk manager might take on. As risk management moves toward a more scientific approach, tech-savvy applicants with a strong background in quantitative analytics will have the edge. An FRM certification provides solid evidence of your knowledge to go along with your experience. 

If you think becoming a financial risk manager might be for you, be sure to check out our other career articles for tips on making career changes and brushing up your resume.

The Most Common Business Administration Jobs

Studying business administration will arm you with several core business skills and fundamental knowledge to pursue various career paths. 

You'll gain confidence in key principles of business such as finance, accounting, and project management, which can give you workplace flexibility in the future. And possessing this type of flexibility is crucial in a now ever-changing employment market. 

Here are some of the most common business administration jobs you can aim for if you choose to dedicate your time to the subject. And the best part is, studying business administration can lead to direct employment! 

Digital Sales and Marketing 

With the monumental expanse of companies selling their products and services on the internet, there's plenty of demand for digital sales and marketing professionals in the job market. 

The number of specific job roles within sales and marketing is too many to count. Yet, with so many job roles out there, it means one could fit your wants and needs perfectly. 

By getting a business administration degree, you demonstrate that you have the dedication and ability to comprehend a range of practical concepts. Plus, you'll have solid foundations in a subject that many sales and marketing departments or companies will appreciate. 

Human Resources 

Human resources management and behavior are typically aspects that are studied within a business administration course. 

When you have the theoretical and practical knowledge of how to handle HR in a company, you suddenly become more employable. Every established company needs HR specialists, and jobs in this field can be gratifying if you are well organized and enjoy working with people. 

Business Consultant 

Studying a 60-week AAS degree, for instance, could set you on a pathway towards business or management consultancy. 

When equipped with a wide range of business knowledge and skills, they can be used to analyze real-life scenarios in business. After studying such things as quantitative methods and business decision-making, you could be in a position to advise companies on the best course of action. 

You may advise on how to increase revenue by recommending structural changes or systems within an organization, for example. 

Event Planning 

Whether it's planning meetings, conventions, or other events, an event planner must be on the top of their game in their job role. 

Event planners need multiple skillsets, and many of these are provided within the study of business administrations. 

For example, studying business administration will teach you about accomplishing goals, planning effectively, organizing, directing, and controlling many aspects of a business. Event planners need many of these skills to manage large teams, coordinate logistics, and meet deadlines on time. 

Business Administration Jobs 

Business administration is one of those subjects with a good balance of theory and applicable skills that can serve you well in the job market. 

The business administration jobs we've looked at are just some examples of the direction you could choose to take in your business administration career. 

Ultimately, studying business administration should be seen as a stepping stone that projects you upwards, potentially much quicker than other pathways. Plus, you'll likely benefit so much more from a leaner, meaner, and more strategic mindset when you complete your course. 

Visit the Career or HR sections of the Frugal Finance Business Blog to learn more about top business admin jobs available for job growth potential.

Is Cheap Business Insurance Good Enough?

By getting cheap business insurance, you might be able to save some money. But you carry the risk of your company being underinsured. Why is this so bad for businesses? 

The Danger Of Underinsurance 

Underinsurance occurs when your Business Insurance policy does not offer enough coverage. Insurance policies come with set inclusions and exclusions. 

The inclusions are the risk covered by the policy, while the exclusions are events not covered. 

Cheap business insurance is not good enough when important risks are not included in your policy. Every business has specific requirements, so if the insurance comes cheap but does not cater to your company’s needs, you will be underinsured. 

So, What Is The Consequence Of Underinsurance? 

With underinsurance, you and your business may lose money. When you make a claim, there is a good chance the cost of the claim will be more than the amount payable by the insurance policy. 

This means that you will not receive the full amount for your claim, and you may have to pay the extra cost of the damage out of your pocket. For instance, if you insure your office building for $80,000, but the building burnt down, and the cost of rebuilding it is $100,000. You will have to pay $20,000, which is 20% underinsurance. 

There is also averaging (also called the law of averages). If there’s a provision for averaging in your policy, the insurer can pay less than the amount insured. When averaging, the insurer will reduce your insured amount by the percentage of your underinsurance. The insurer will take away 20% of $80,000 and pay you out $64,000 instead. 

You Won’t Believe The Number Of Underinsured Small Businesses! 

FreshBooks surveyed 1,100 small businesses. This survey revealed that only 60% of these businesses had insurance. Of those with insurance, over 40% said their personal insurance was enough to cover their business. 

This means that about 70% of small businesses in the US are either not insured or underinsured. 

Things To Compare Before Buying Coverage 

Without a doubt, insurance is essential. But you can also overpay for it. To avoid overpaying, compare various items across different insurance companies.

Some of the items to compare are: 

● Deductible:  The deductible is an amount you pay before the insurer pays your insurance benefits. If you are paying a higher deductible, your premium will likely be affordable. 

● Insurance Coverage:  Assess the coverage the policy offers your business against the cost. If the policies from 2 companies offer you similar coverage, you may opt for the less expensive option. But confirm that the coverage does not leave you at financial risk. 

● Company Credibility:  You should also compare the rating of the companies. A-rated insurers usually offer insurance services that are worth the money. 

● Policy Limit:  The policy limit is the maximum the insurer will pay you when you make a claim. If this limit is low, your premium will be less expensive. But it may mean lower coverage.

Don’t Pay For What You Don’t Need 

Never assume that the cheapest Business Insurance policy provides the full coverage you are seeking for your business. However, don’t get caught paying for coverage you don’t need. Speak to your insurance agent about getting the best coverage at the price you can afford. 

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