LLC & Multi State Appointments. Worth It for Tax Benefits?

[Mick_Keyou]

Trying my best to find this info:

Can I incorporate in FL but get appointed & licensed as an individual producer in non-resident states without the agency getting non-resident appointments & licenses?

Thanks

 

[sman]

Trying my best to find this info:

Can I incorporate in FL but get appointed & licensed as an individual producer in non-resident states without the agency getting non-resident appointments & licenses?

Thanks

Depends on the carrier. More and more carriers are requiring your agency (LLC) to be licensed in the non-res states as well. That is if you are wanting the commissions to be paid to the LLC and not you personally.

 

[Mick_Keyou]

Ok, spoke with my accountant. He mentioned that perhaps I can get paid commissions as an individual but assign the checks/commissions to the LLC account that I set up in my home state. Called an LLC lawyer that puts this all together (like legalzoom) with this scenario. She said she's going to research it. Haven't heard back from her.

My head is about to explode.

 

[moonlightandmargaritas]

Ok, spoke with my accountant. He mentioned that perhaps I can get paid commissions as an individual but assign the checks/commissions to the LLC account that I set up in my home state. Called an LLC lawyer that puts this all together (like legalzoom) with this scenario. She said she's going to research it. Haven't heard back from her.

My head is about to explode.

While I'm not an attorney (thank god), and this isn't intended as legal advice, you're wasting money on lawyers (even with legalzoom - she hasn't got a clue what you're talking about). Set up a Florida LLC ($140 at sunbiz.org). Ask the carrier for a form to assign your personal comp to your LLC (single member I assume?). Done.

 

[Mick_Keyou]

While I'm not an attorney (thank god), and this isn't intended as legal advice, you're wasting money on lawyers (even with legalzoom - she hasn't got a clue what you're talking about). Set up a Florida LLC ($140 at sunbiz.org). Ask the carrier for a form to assign your personal comp to your LLC (single member I assume?). Done.

The llc will have 2 members. Does that throw a wrench into it?

 

[moonlightandmargaritas]

The llc will have 2 members. Does that throw a wrench into it?

It might.

Here in Florida, single member LLC's are not required to have a separate agency license. More than single member, I believe they do.

 

[Mick_Keyou]

Argrrhhhh! This is making me mental. Ok, so this LLC will be for me and my wife.

Is this a possible workaround? I set LLC as single member as you previously stated for myself and have my wife contract with carriers by assigning commissions to the LLC?

Btw, thanks for your help.

 

[moonlightandmargaritas]

Argrrhhhh! This is making me mental. Ok, so this LLC will be for me and my wife.

Is this a possible workaround? I set LLC as single member as you previously stated for myself and have my wife contract with carriers by assigning commissions to the LLC?

Btw, thanks for your help.

Not sure. You may have to be a member of the LLC to be able to assign commissions to it...

 

[Mick_Keyou]

The DOI would be able to answer these questions? I'll give them a call today and get this mess sorted out.

Thanks again

 

[sman]

I'm in Georgia and my experience has been just about all the carriers are requiring the agency to not only be licensed, but also appointed with each carrier. The only carrier who hasn't required it so far is Coventry. I just sent them a letter requesting commissions be assigned to the new tax I.D.