What is ConAPA, Inc.?
Who can join the ConAPA, Inc. program?
What is the law regarding Workers Comp insurance?
Do companies have to incorporate? What are the advantages of incorporating?
How much money can a company save by joining the ConAPA, Inc. program?
Why must members participate in the safety training and risk management program?
Why must members hold quarterly shareholder meetings?
What kind of insurance coverage does ConAPA, Inc. provide?
Do I have to give my employees workers comp coverage?
What are the advantages of employee ownership?
Does making my employees shareholders and officers/directors mean I give up my ownership?
What if I don't want to offer all of my employees the opportunity to become a shareholder?
Do corporate attorneys work for ConAPA?

What is ConAPA, Inc.?

ConAPA, Inc. is a California licensed insurance and employee benefits broker. ConAPA provides businesses with health, life, disability, chiropractic, and dental benefits, as well as a bevy of other business solutions including: commercial insurance, safety training, corporate formation assistance, payroll services, and financial planning.

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Who can join the ConAPA, Inc. program?

Any California company that is interested in becoming more profitable and protected should consider joining the ConAPA, Inc. program.

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What is the law regarding Workers comp insurance?

Workers comp is required insurance for employees. In the State of California vs. Dirt Cheap Demolitions (Division of Labor Standards Enforcement Case Number 35-51795/011), the Labor Commissioner held that Section 3351(c) of the California State Labor Code is a proper method of excluding shareholders/officers from the workers compensation requirement.

Barger & Wolen recognize the legitimacy of the exemption set forth at Labor Code Section 3351 (c)

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Do companies have to incorporate? What are the advantages of incorporating?

Companies must be incorporated to be eligible for the ConAPA, Inc. program. ConAPA guides you through the incorporation process with the assistance of our network of preferred attorneys. The advantages of incorporation are:

Limited Liability- Incorporating your business limits personal liability for business debts and court judgments.

Lower Income Taxes- Splitting income between employee-owners and the corporation can reduce income taxes.

No Double Taxation- Electing an S-Corp allows corporate profits to pass through to shareholders as ordinary income, avoiding double taxation.

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How much money can a company save by joining the ConAPA, Inc. program?

Please refer to our Sample Savings page. The amount a company can save is determined by a multitude of factors including previous workers comp rates, age, and industry. ConAPA is happy to provide a quote, free of charge and free of obligation.

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Why must members participate in the safety training and risk management program

In addition to being a requirement by Cal-OSHA for certain industries, safety trainings and risk management programs help keep your workplace safer, in turn, reducing claims. One factor insurance companies use in determining premiums is the company's history of injured workers. These safety programs ensure premiums are kept as low as possible.

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Why must members hold quarterly shareholder meetings?

Participating members must hold shareholder meetings four times a year and keep detailed minutes to show that the individuals are active shareholders within the corporation.

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What kind of insurance coverage does ConAPA, Inc. provide?

As a ConAPA member, shareholders receive 24/7 health, life, disability, chiropractic, and dental coverage. Additionally, ConAPA provides traditional on-the-job protection (workers compensation) for employees who are not shareholders.

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Do I have to give my employees workers comp coverage

Companies must provide workers comp coverage for employees who are not shareholders. Companies can opt out of workers comp coverage for shareholders who are officers or directors of a closely held corporation.

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What are the advantages of employee ownership?

Employees who become shareholders gain an entirely new attitude on the job. Employee owners are eligible to participate in corporate sponsored benefits: health, life, disability, chiropractic and dental coverage as well as stock bonus plans and pension plans. In addition, stock incentives and dividends create loyalty, and increase motivation and work quality. Employee ownership is a great way to retain key employees and build a sense of a "working family".

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Does making my employees shareholders and officers/directors mean I give up my ownership?

The employer/owner retains control of the company while officers are made minority shareholders. The employer retains the right to terminate any employee or officer. If the new shareholder/officer should leave the company, the corporation buys back the shares in accordance with the "stock buy-back agreement," which is a part of your corporate documentation.

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What if I don't want to offer all of my employees the opportunity to become a shareholder?

You make the decision as to whom you would like to give the opportunity to purchase stock and how many shares you are going to sell in your corporation. ConAPA is able to accommodate all of your employees, regardless of their position in your company.

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Do corporate attorneys work for ConAPA?

No, ConAPA has built a network of preferred attorneys that have their own firms and specialize in corporate law. These attorneys are familiar with the requirements of ConAPA participation and compliance, as well as California state law. You may choose to hire a non-preferred attorney to incorporate; however, he or she must adhere to ConAPA guidelines.

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