Medical Staffing Business Manuals
Business Structure Like every business, the staffing company must have a legal business structure. In most cases, it is preferable for the staffing company to have a corporate entity to protect the owners from legal liabilities that result from the errors and omissions conducted by their placed employees. If the staffing company elects a partnership or corporate business structure, it must charter its business with the state’s Secretary of State. The business structure does not have to be chartered within the state in which it operates.
Business Registration Once the staffing business has secured its legal business structure, it must register its business operations with the state in which it will operate. The registration process varies by state and requires a registration fee. Once the registration is completed, the state will provide the staffing company with a state tax identification number, which must be referenced when paying the business’s taxes, including staff and employee withholding. Business Insurance A well-defined business insurance policy helps to protect the staffing company from liability and aids the company in meeting its legal requirements.
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Medical Staffing Business Plan
The staffing company requires a general liability insurance policy, as well as workers’ compensation for its full-time staff members. Workers' compensation insurance is especially important when your staffing company offers long-term staffing services. Most states require businesses to maintain workers’ compensation insurance for its employees.
If you provide long-term placement services, the placed employee is a long-term employee of the staffing company and requires workers’ compensation coverage under the staffing agency. To determine the exact insurance needs for your staffing company, speak with your insurance agent and provide the agent with the details of your staffing company. The agent will aid you in building a policy that meets the staffing company’s needs and the requirements of the state. Other Considerations While some staffing companies focus on general employment and labor positions, some staffing companies specialize in certain industries, such as nursing or technology placements. Some states require specialty staffing organizations to acquire specific licenses in order to place employees. To determine whether your state requires these licenses, seek assistance from your city’s business development office or representative. The office will provide you with the specific information needed to obtain the additional licensing, if required.