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HOW TAXES AFFECT BONDING
When contractors pursue bid and performance bonds, there is a submission process through which a body of underwriting information is developed.
Many applicants liken the process to making application for a bank loan. The irony is that the process is in fact similar, and bonding companies view the issuance of bonds like to giving of surety credit.
One would assume that financial statements and tax returns will be needed by the banker. They also know that personal credit reports and a business Dun and Bradstreet report will be reviewed by the lenders. This line of thinking can prepare the contractor for the questioning process associated with bonding.
There are many factors that contribute to the underwriting decisions on bonds. The contractor's history is considered along with credit and financial analysis, estimating, project management, equipment - a variety of elements.
For many contractors the process of seeking surety bonds is mysterious and frustrating. Not having them can prevent the company from graduating to larger projects and greater financial success. Seminar attendees often ask us for the silver bullet. "What must I do to get bonded?" So now we reveal what, for many, will be the key to qualifying for bid and performance bonds:
Pay More Taxes!
Sound crazy? Often company managers struggle to manage (reduce) tax payments. They feel a low bill (or no tax bill at all) is proof of a successful financial strategy. So why can paying more taxes help the company qualify for bonds?
Surety underwriters intend to write bonds for successful firms that are likely to succeed on their bonded contracts. What better sign of success than to have made a profit in the prior year? Profits prove the vitality of the company. They show that company management acquired enough work, with a sufficient margin and controlled expenses, resulting in a net profit. The point is - you only have taxes if the year was successful and the company made money. The profits strengthen the foundation of the company assuring continued stockholder and creditor support. Profits and growth are all elements that, when combined with other relevant factors, lead to confidence on the part of the underwriters. That's when bonds get issued!
Summary:
Paying taxes is an important part of bonding not because the taxes are beneficial; but because the tax payment is indicative of good record keeping, profitability, cash flow and growth all of which are good for the company and the surety that supports it.
Steve Golia is an experienced provider of bid and performance bonds for contractors. For more than 30 years he has specialized in solving bond problems for contractors, and helping them when others failed.
Steve Golia brings underwriting talent and market access to his clients. This is coupled with spectacular service and great accessibility
Article Source
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HOW TAXES AFFECT BONDING
When contractors pursue bid and performance bonds, there is a submission process through which a body of underwriting information is developed.
Many applicants liken the process to making application for a bank loan. The irony is that the process is in fact similar, and bonding companies view the issuance of bonds like to giving of surety credit.
One would assume that financial statements and tax returns will be needed by the banker. They also know that personal credit reports and a business Dun and Bradstreet report will be reviewed by the lenders. This line of thinking can prepare the contractor for the questioning process associated with bonding.
There are many factors that contribute to the underwriting decisions on bonds. The contractor's history is considered along with credit and financial analysis, estimating, project management, equipment - a variety of elements.
For many contractors the process of seeking surety bonds is mysterious and frustrating. Not having them can prevent the company from graduating to larger projects and greater financial success. Seminar attendees often ask us for the silver bullet. "What must I do to get bonded?" So now we reveal what, for many, will be the key to qualifying for bid and performance bonds:
Pay More Taxes!
Sound crazy? Often company managers struggle to manage (reduce) tax payments. They feel a low bill (or no tax bill at all) is proof of a successful financial strategy. So why can paying more taxes help the company qualify for bonds?
Surety underwriters intend to write bonds for successful firms that are likely to succeed on their bonded contracts. What better sign of success than to have made a profit in the prior year? Profits prove the vitality of the company. They show that company management acquired enough work, with a sufficient margin and controlled expenses, resulting in a net profit. The point is - you only have taxes if the year was successful and the company made money. The profits strengthen the foundation of the company assuring continued stockholder and creditor support. Profits and growth are all elements that, when combined with other relevant factors, lead to confidence on the part of the underwriters. That's when bonds get issued!
Summary:
Paying taxes is an important part of bonding not because the taxes are beneficial; but because the tax payment is indicative of good record keeping, profitability, cash flow and growth all of which are good for the company and the surety that supports it.
Steve Golia is an experienced provider of bid and performance bonds for contractors. For more than 30 years he has specialized in solving bond problems for contractors, and helping them when others failed.
Steve Golia brings underwriting talent and market access to his clients. This is coupled with spectacular service and great accessibility
Article Source
Click Here To Visit Your Link
HOW TAXES AFFECT BONDING
When contractors pursue bid and performance bonds, there is a submission process through which a body of underwriting information is developed.
Many applicants liken the process to making application for a bank loan. The irony is that the process is in fact similar, and bonding companies view the issuance of bonds like to giving of surety credit.
One would assume that financial statements and tax returns will be needed by the banker. They also know that personal credit reports and a business Dun and Bradstreet report will be reviewed by the lenders. This line of thinking can prepare the contractor for the questioning process associated with bonding.
There are many factors that contribute to the underwriting decisions on bonds. The contractor's history is considered along with credit and financial analysis, estimating, project management, equipment - a variety of elements.
For many contractors the process of seeking surety bonds is mysterious and frustrating. Not having them can prevent the company from graduating to larger projects and greater financial success. Seminar attendees often ask us for the silver bullet. "What must I do to get bonded?" So now we reveal what, for many, will be the key to qualifying for bid and performance bonds:
Pay More Taxes!
Sound crazy? Often company managers struggle to manage (reduce) tax payments. They feel a low bill (or no tax bill at all) is proof of a successful financial strategy. So why can paying more taxes help the company qualify for bonds?
Surety underwriters intend to write bonds for successful firms that are likely to succeed on their bonded contracts. What better sign of success than to have made a profit in the prior year? Profits prove the vitality of the company. They show that company management acquired enough work, with a sufficient margin and controlled expenses, resulting in a net profit. The point is - you only have taxes if the year was successful and the company made money. The profits strengthen the foundation of the company assuring continued stockholder and creditor support. Profits and growth are all elements that, when combined with other relevant factors, lead to confidence on the part of the underwriters. That's when bonds get issued!
Summary:
Paying taxes is an important part of bonding not because the taxes are beneficial; but because the tax payment is indicative of good record keeping, profitability, cash flow and growth all of which are good for the company and the surety that supports it.
Steve Golia is an experienced provider of bid and performance bonds for contractors. For more than 30 years he has specialized in solving bond problems for contractors, and helping them when others failed.
Steve Golia brings underwriting talent and market access to his clients. This is coupled with spectacular service and great accessibility
Article Source
Click Here To Visit Your Link
HOW TAXES AFFECT BONDING
When contractors pursue bid and performance bonds, there is a submission process through which a body of underwriting information is developed.
Many applicants liken the process to making application for a bank loan. The irony is that the process is in fact similar, and bonding companies view the issuance of bonds like to giving of surety credit.
One would assume that financial statements and tax returns will be needed by the banker. They also know that personal credit reports and a business Dun and Bradstreet report will be reviewed by the lenders. This line of thinking can prepare the contractor for the questioning process associated with bonding.
There are many factors that contribute to the underwriting decisions on bonds. The contractor's history is considered along with credit and financial analysis, estimating, project management, equipment - a variety of elements.
For many contractors the process of seeking surety bonds is mysterious and frustrating. Not having them can prevent the company from graduating to larger projects and greater financial success. Seminar attendees often ask us for the silver bullet. "What must I do to get bonded?" So now we reveal what, for many, will be the key to qualifying for bid and performance bonds:
Pay More Taxes!
Sound crazy? Often company managers struggle to manage (reduce) tax payments. They feel a low bill (or no tax bill at all) is proof of a successful financial strategy. So why can paying more taxes help the company qualify for bonds?
Surety underwriters intend to write bonds for successful firms that are likely to succeed on their bonded contracts. What better sign of success than to have made a profit in the prior year? Profits prove the vitality of the company. They show that company management acquired enough work, with a sufficient margin and controlled expenses, resulting in a net profit. The point is - you only have taxes if the year was successful and the company made money. The profits strengthen the foundation of the company assuring continued stockholder and creditor support. Profits and growth are all elements that, when combined with other relevant factors, lead to confidence on the part of the underwriters. That's when bonds get issued!
Summary:
Paying taxes is an important part of bonding not because the taxes are beneficial; but because the tax payment is indicative of good record keeping, profitability, cash flow and growth all of which are good for the company and the surety that supports it.
Steve Golia is an experienced provider of bid and performance bonds for contractors. For more than 30 years he has specialized in solving bond problems for contractors, and helping them when others failed.
Steve Golia brings underwriting talent and market access to his clients. This is coupled with spectacular service and great accessibility
Article Source
The building profession is a diverse field. Construction workers are employed in a variety of commercial and residential settings and use an array of different tools and materials. As a result, each site presents unique risks for personal injury or property damage. Construction insurance is necessary to protect contractors, subcontractors, and property owners from litigation resulting from an injury or property damage connected with the building process.
However, purchasing construction insurance is not just a wise business investment. Policies may be required when providing services to the federal, state, or local government. Many private entities will require coverage as well. Your employees, clients, and the public all benefit from comprehensive coverage in the event that something does not go as planned. Potential clients also look for these protections as a sign of professionalism when hiring a contractor.
Construction insurance works by protecting the contractor and any injured parties in the event of property damage or injury at the job site. This type of policy is referred to as commercial general liability insurance. Parties protected generally include the party agreeing to the services and members of the public directly affected by the work.
The insurance company will pay for any accidental injuries or property damage so that the business owner does not have to pay from his own pocket. Legal counsel will also be provided in the event your business is sued as a result of an accident. Negligent behavior and deliberate omissions or errors are not covered by these policies. Typically, the policies are effective during the time the contracted work is ongoing. However, issues may arise long after the completion of the building. These problems can often be addressed when creating the agreement by adjusting some of the language.
A builder's risk policy indemnifies against damage to the building while under construction. It protects against damage to fixtures, materials, and equipment used in the building or renovation process that may be caused by fire, wind, theft, or vandalism. Cars and trucks used in connection with the work and driven by employees may need coverage as well. Design professionals like architects, or others engaged in designing any aspect of the project should have professional liability coverage.
Workers compensation is another type of coverage that may be required in your state. These policies protect workers injured or who become ill on the job site by paying medical bills and disability claims. Finally, a bid bond may be required under some circumstances. This is a proof of guarantee to the project owner that a contractor can perform the work required and is a promise that the owner will be compensated.
Consult with an agency experienced in serving contractors, subcontractors, and property owners if your project requires construction insurance. An experienced agent can help identify risks and potential losses in order to determine what plans will cover your needs.
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Commercial auto insurance is an essential expense for a large number of businesses. This type of coverage protects a business from potential lawsuits if any of their vehicles are involved in an accident, no matter who is at fault. Many people believe this coverage is only needed for shipping or transportation businesses. Here are some businesses that can also benefit from commercial auto insurance.
Catering Companies
These businesses often have employees traveling to and from worksites daily. A chance of something happening during the drive always exists. The company could face a lawsuit if the driver was deemed at fault in an accident. This coverage helps pay the costs of any damages or litigation.
Driving Instructor
If you are a driving instructor who uses your own car, especially if the vehicle is an instructor car with two brakes, you should consider extra coverage. Many insurance plans do not cover incidents that involve an unrelated driver operating the vehicle. If vehicle has been written off as a business expense for tax purposes, it may not qualify for simple coverage.
Pizza Delivery
If a driver uses a company-provided car, then the business may be liable. However, many delivery businesses protect themselves by requiring the drivers to use their own cars. This places the burden for obtaining insurance coverage back on the individual drivers.
At-Home Care or Education Professionals
If you are required to travel regularly while transporting job-related equipment or materials, it may make sense to have commercial auto insurance. Whether you represent your own small business or are a contracted employee, this type of coverage can help reimburse the cost of lost equipment following an accident. Plus, it may prevent a job-related claim from affecting the rates of any personal coverage plans.
With a proper plan in place, any accidents or injuries that occur involving a company vehicle should be covered by the insurer. This shields not only the driver, but also the business owner from facing a large lawsuit or major claims for damages or medical expenses. When purchased by a well-known or large corporation, these plans become relatively inexpensive on a per-vehicle basis. You may need to contact the local department of labor or DMV in order to determine if you are legally required to have this kind of plan.
Even if it is not a requirement, commercial auto insurance can give both the drivers and business owners some peace of mind knowing that they are covered if the unplanned should arise.
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Life can bring a series of good and bad events. There are happy times to be celebrated and milestones to be conquered. At some point in your life, you will suffer from an illness, accident and incident. You will also need to think about saving, protecting your investments and securing your retirement. This is the reason why you need to consider having insurance policies to cover different aspects of your life. Nowadays, insurance is available for literally everything, including natural disasters and insurance for different parts of your body.
Once you purchase an insurance policy, you need to know what is happening in the industry. This is why insurance news is available. This news is available to allow clients to know of new policies, new insurance regulations and how it affects their policies. Every day, the insurance industry is faced with challenges as well as opportunities to provide better services for their clients. This usually depends on the situation of the country. Here are some important areas of the insurance industry that you always need to stay updated:
• Health insurance: Whatever happens in the medical field will definitely affect your health insurance. Health insurance news also includes healthcare reforms that the government puts in place, medical malpractice lawsuits and diseases. There are certain times when policies become favourable to clients especially when the support of the government and other stakeholders is initiated. Following this news will ensure that you are aware of the new policies available, medical costs that you are exempted from and the benefits of having the health insurance policy that applies to you.
• Auto insurance: We use our cars on a daily basis. Indeed car accidents also occur daily. This makes it mandatory to have auto insurance. The insurance industry news will cover this sector to inform their clients of new regulations in order to stop accidents and incidences on the roads. Additionally, in cases where the automobile industry is facing challenges in a particular area such as the weather, the insurance company will be involved in coming up with solutions to tackle challenges that the weather brings on our roads.
Insurers as well as the stakeholders are always looking for reforms especially in areas such as healthcare reform in order to satisfy the needs of their clients. This information will always be available in the media, their websites and other social media networks. It is important to stay informed with the news as whatever happens in the insurance industry will affect you, your money and everyone that is connected to you.
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