If you are going to open up a staffing agency, there are a lot of legalities that you will need to be aware of in order to run a lawful business. Staffing companies have to live up to the requirements that any other companies have to live up to, in addition to any other requirements that the city or state may implement for those types of businesses. Staffing agency insurance, licensing, and tax responsibilities are just a few of the requirements that you will need to complete.
Depending on the area where your staffing agency is located, there will be a minimal amount of insurance required. The two most common types of staffing agency insurance that you will be required to have are general liability and workman’s compensation. Speaking to an insurance agent will help you to determine whether there is other insurance coverage that you need, and what it is.
Every company in the nation has to be licensed in order to run a commercial business. Check with your local municipality to find out what the requirements are to obtain your license before opening day.
Every staffing agency that is up and running is required to pay both state and federal taxes on every dollar that they earn. In addition, unemployment tax, Social Security, Medicare, and others may also be included in the taxes that a staffing company has to pay.