Entrepreneurs forming an LLC will want to consider new tax credits available through recent healthcare reform in order to minimize expenses.
The new requirements are aimed at making healthcare coverage affordable for smaller businesses. A report by Families USA and the Small Business Majority states that only 46 percent of U.S. companies with fewer than 10 employees provide healthcare.
Much of this lack of coverage is due to the difference in purchasing power of larger companies that are able to lock in lower group rates.
But the new tax credits should offset the gap by offering a 35-percent tax credit for companies with fewer than 10 employees and average annual incomes of $25,000. Larger companies with fewer than 25 employees each earning less than $50,000 annually can avail of a partial tax credit.
Garry Apelian owns a Chicago-area carpet company. He told the Chicago Tribune that high healthcare costs have kept him from hiring new employees, even when business is good.
More creative strategies to manage healthcare costs are being sought by business owners. A recent University of Michigan study found that long-term employee wellness programs provide considerable healthcare savings for employers.
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