Surge365 Compliance Update – May 2017

Hey Surge365 Rock Stars!

Convention is right around the corner and everyone is running hard and fast up to the event. As we run let’s not forget to keep ourselves in check with the compliance side of our business.

This month let’s focus on the following 3 points:


1. Enrolling new SBAs and Members
New SBAs and Members should be active participants in the signup process. This allows them the opportunity to select the product of their choice, be presented with the proper policies and procedures, and capture THEIR electronic signature. Please refrain from using paper applications and signing people up over the phone. When we receive cancellations we often hear customers say they did not know there was a recurring monthly fee or they weren’t fully aware of what they signed up for – they just gave their credit card over the phone. To protect our business and your income, let’s follow the best practice of a thorough explanation of the product and allowing people to enroll themselves online. Plus, less work for you, bonus!

2. One Business Per Household
Please do not allow two people from the same household to buy a business. The “One Business Per Household Rule” is currently addressed in the Surge365 SBA Policies & Procedures, Section 4.2. The policy states that an individual may not take interest in more than one SBA position. This means they cannot sign up using a company name and FEIN and also have a personal account with their personal Tax Identification Number.

3. Promotion of Tax Advantages of an Independent Business
SBAs must not imply that an SBA may take tax deductions based on monies spent on personal travel or by being an independent business person. We should not give tax advice, nor should we use any possible tax advantages as an inducement for someone to join as an SBA. An SBA may only state, “SBAs should consult a tax adviser to determine what, if any, tax deductions may apply to home based businesses,” or words to that effect. The “Promotion of Tax Advantages of an independent business” is currently addressed in the Surge365 SBA Policies & Procedures, Section 3.34.

You can download current copies of both sets of Policies and Procedures (SBA and Member) in your Back Office under Menu>Resources>SBA Documents.

As always, I appreciate your enthusiasm, drive, and compliance with all policies.

Katrina Bridges
Director of Operations
compliance@surge365.com