The employer is the main difference between a staffing agency and a temp agency, other than the fact that work at a temp agency is not permanent. Staffing agencies might fill several open positions or just one or two.
In Texas, staffing agencies are required to be licensed through the Texas Workforce Commission (TWC). This process involves obtaining a sales tax permit, workers' compensation insurance, liability insurance, and a surety bond, ensuring your agency adheres to state ethical and professional standards.
How to Start Your Own Employee Leasing Company Register your business. Consult your state and county licensing boards to see if you need a license or permit to operate your employee leasing company. Locate professional office space. Create a niche in your serviceable area. Build and grow a business network.
While leased employees are legally employed by a PEO, they work under the day-to-day management and supervision of the leasing business — much like any other employee. This generally gives the leasing business control over how they spend their time, which tools they use to perform their work, their deadlines, and more.
How to Start a Temporary Staffing Agency Evaluate Your Skills. Find Your Target Market. Develop a Business Plan. Form a Legal Entity. Get Insurance to Protect Your Temp Staffing Agency. Calculate Your Costs. Find Employees For Your Temp Agency. Recruit Clientele.
In Texas, staffing agencies are required to be licensed through the Texas Workforce Commission (TWC). This process involves obtaining a sales tax permit, workers' compensation insurance, liability insurance, and a surety bond, ensuring your agency adheres to state ethical and professional standards.
Drawbacks of employee leasing Less control: One of the greatest risks of employee leasing is that you're delegating an important part of your business to an outside company that doesn't know your business as well as you do. You lose control of your processes, systems and benefits.
Under an employee leasing arrangement, you'll lease workers from another company who becomes the employer of record for certain obligations. You'll control the work the employees perform while the leasing company will issue their paycheck, report taxes, and manage benefits.
In California, employee leasing companies take care of locating qualified candidates, distributing payroll, and dealing with employee benefits allowing you more time to concentrate on your actual business.