Individual or Sole Proprietor

[Crabcake Johnny]

Under $300 - a myriad of sites where you can get the forms online.

http://www.legalzoom.com/legal-incorporation/incorporation-pricing.html

 

[mawk01]

Just wondering if you use a domain name that is different than your proper name, are you in fact a dba, requiring registration?

Thanks

 

[somarco]

Just wondering if you use a domain name that is different than your proper name, are you in fact a dba, requiring registration?

Varies by state and local jurisdiction.

In GA, DBA's are registered in the county where your business is located. There is a filing fee and you would be required to apply for a business license and pay the fees.

Corporate names are registered with the SOS.

 

[hlink20]

I think it was John P. who recommended starting a business for your insurance sales. Is it ok to sale insurance as an individual or do I need to file a dba for a tax number? Are there advantages to being a sole proprietor? How many of you guys have set a up business entity?

Yes, you can sell individual and you will receive 1099 commissions. In my opinion it is important to incorporate yourself. One of the easiest methods is to set up a LLC through legalzoom.com

 

[moonlightandmargaritas]

In my opinion it is important to incorporate yourself.

Why is that?

 

[hlink20]

Why is that?

That is my opinion. I would check out legalzoom or a similar firm which will detail the benefits for you. As always, it is best to consult with an attorney or advisor when making a decision like this. Thanks and good luck.

 

[moonlightandmargaritas]

That is my opinion.

Most "opinions" (ones worth listening to anyway) have some sort of basis of fact to them.

I would check out legalzoom or a similar firm which will detail the benefits for you.

Here in Florida, legalzoom.com, and other legal-type sites will charge you anywhere from $274 to $484 (including the state filing fee) for something you can do yourself for just the state filing fee ($125) in about ten minutes online at www.sunbiz.org - Home.

Of course, in other states, ymmv.

 

[SportsNut]

Most "opinions" (ones worth listening to anyway) have some sort of basis of fact to them.

Here in Florida, legalzoom.com, and other legal-type sites will charge you anywhere from $274 to $484 (including the state filing fee) for something you can do yourself for just the state filing fee ($125) in about ten minutes online at www.sunbiz.org - Home.

Of course, in other states, ymmv.

Good info... FL has their act together with the Sunbiz site. Have used it a number of times.

Easy to use for intial filings, annual reports, and search data for checking out existing companies. All states should model themselves after this system.

 

[bill3173]

I think most agents/brokers, especially newer ones, spend way too much valuable time sweating this stuff.

If you don't find enough new clients and first year commissions, it's all going to be moot anyway. You' be well organized with the correct business form, but you'll be broke. Keep the horse in front of the cart!

After getting to about $75K in net revenues, it makes sense to look at a sub-chapter s corp - as a tax play.

Until you get there though, don't worry about it. Use the energy and resources to build clients.

This is an interesting thread, but that's probably the best advice you could give someone.

Doing all of that stuff, while trying to build a client base is a bigger pain in the ass than its worth. I know because I do things the hard way.

Great day, read that State Farm thread if you want further proof. They have everything lined up to conduct a well organized business, planning, execution, etc. and borrow money just to make ends meet.

When I was captive, at a lady's house writing a small premium term policy. Her SF agent called and she told him what she was doing and he started screaming at her over the phone. She set the phone down and asked me "did you hear that?" I was like uh, I think so. It was my first year in the biz. I thought those guys were supposed to be playing golf and making big money.

This was over a $40 monthly premium on a term policy, if you can believe that S_ _ _.

 

[SportsNut]

Her SF agent called and she told him what she was doing and he started screaming at her over the phone. She set the phone down and asked me "did you hear that?" I was like uh, I think so. It was my first year in the biz. I thought those guys were supposed to be playing golf and making big money.

This was over a $40 monthly premium on a term policy, if you can believe that S_ _ _.

I don't think it is about the amount of prem as it is about the protection of territory, with the SF mentality. If one can invade their client base for a $ 40 prem, then they can do so for all the marbles... Simple as that.

I agree, way too much is made of, or time spent on the posturing of any new biz person, ins or othewise. The best advice is to be well on the way to creating the tax problem, then solve it at that point. It never hurts to have some knowledge of "how" one will solve the problem, but shouldn't get paralyzed by the posturing over the subject before the income is well on the way to being earned.