A staffing company is considered essential in today’s market for any business in need of temporary employees to cover the position of a regular employee who, for whatever reason, is unable to report for work. Their primary goal is to develop relationships with employers in order to place qualified individuals in any positions for that employer when a vacancy occurs. It’s the job of the staffing company to help fill short-term and long-term positions and, at times, provide direct placement assistance for employers.
Starting a staffing company can actually be a much easier endeavor than many other businesses when it comes to start-ups. In general, a staffing company requires fewer licenses and needs only to address minimal requirements in order to proceed with licensing and permits. Though the licenses and requirements are few, the requirements must be met in order to operate the business legally and place applicants with business clients. Staffing insurance is an important part of this plan.
Keeping it legal
Just like any other business, a temp agency must have a legal business structure in place. In many cases it’s preferable for the company to have a corporate entity that protects the owners from legal liabilities that may result from any errors and omissions conducted by their placed employees. They may elect to have a partnership or corporate business structure, however the business structure doesn’t have to be chartered within the state in which it operates.
Once it has secured its legal business structure, it must then register its operations with the state in which it will be operating. The registration process varies by state and requires a registration fee. Once completed, the state will provide the staffing company with a state tax identification number that must be referenced when paying the business’s taxes, including staff and employee withholding.
No business can succeed without insurance in place
Any business that farms out temporary workers needs a staffing insurance policy that will help protect the company from liability issues and also aid the company in meeting its legal requirements. Most staffing company start with a general liability insurance policy, as well as workers’ compensation for its full-time staff members. Workers’ comp insurance is especially important when a staffing company offers long-term staffing services.