How a Professional Employer Organization (PEO) helps Sole Proprietors

You read that correctly.  Many people don’t know that sole proprietors and solopreneurs can use PEOs.

In the past, most PEOs required that you employed 5 or more people to join a PEO.  But, for many business owners, that was just never in the plans. So gaining access to quality, affordable health insurance was never an option.  The closest comparable solution was joining a union or an association. 

When we first started Dinsmore/Steele, we would often run into companies with only one or two employees that wanted to join a PEO. Unfortunately, there wasn’t a solution and it left this large segment of businesses with no access to PEOs.

That has changed, in the last year or so, because more and more companies only have one or two employees, at least to start. 

Every company, regardless of their size, begins as a startup - if you think of that statement, it’s very true and makes perfect sense. At Dinsmore/Steele, we have always looked for solutions that no one else had or very few had access to.  So, over a year ago, we uncovered a small group of PEOs that would work with one and two-person companies. 

To better understand how PEOs help sole props and solopreneurs, here are a few examples. 


A one Doctor medical practice needed access to quality health insurance and everything in the open market made no sense for her particular needs. We placed her with a regional PEO that offered access to UHC/Oxford and, for a reasonable monthly administration fee, they also process her payroll, resulting in a win-win and a happy Doctor. 

Hedge Fund 

An early-stage Hedge Fund reached out to us. With plans to grow to 25 employees by mid-2016, they wanted to get off on the right foot, from the start. The founder was a K-1 partner, so we were able to place him with a PEO that allowed for him to stay a K-1, while giving him access to a National Aetna plan. As they grow, the PEO will support their growth and the fund will have a quality HR infrastructure.  

Tech Company

A Two person startup, with plans to become the next unicorn, needed help with everything HR, payroll, employee benefits and WC related. They were using Zenefits, but needed a full-service solution and access to health insurance that would WOW the talent that they wanted to recruit. We sourced a national solution that solved every issue that they had.  Now they can focus on becoming te next big app on your smartphone. 

PR Firm 

A one man, powerhouse PR firm wanted to reduce his multiple providers into one. He was clear that he wanted to focus on his business, which is very busy.  He did not want to worry about “running” the business. We understood and placed him on a National Cigna plan, including payroll and workers’ compensation insurance.  Now, he can focus on his clients. 

These are just a few of the sole props and solopreneurs that we have helped with PEO solutions. In recent years, it seems like everyone has jumped on the bandwagon, offering solutions that supposedly solve the disconnect between payroll, employee benefits, HR and workers’ comp insurance.  And, while some of them might make sense - nothing will take the place of a full-featured PEO. 

If you are a sole prop or a solopreneur or a small company and you need a solution to finding quality, affordable health insurance, we can help you, as well. Give us a few minutes that work in your schedule and we’ll start finding the right PEO solution for you.