Selling in multiple states and taxes

[KandKsmommy]

Hi Guys,

One of my providers moved and reached out about me helping her patients. Trouble is I'm in ME and she is now in Brandon, FL.

I know the licensing info as far as reciprocity and fees. My question is how does that work with taxes?

My boss converted us to an LLC filing as an S-Corp for taxes. I want to help my provider but I would certainly prefer to be able to also serve the people I help as their agent and be compensated. My boss will certainly be checking with her tax man but I thought I would get some insight.

 

[sshafran]

Commissions for non res sales do not require other state income taxes, if that is what you mean.

At least I do not file income taxes in any other state for insurance commissions.

 

[GoPokes]

You pay income taxes in the state where you are physically located when you are earning the money.

If you want to sell in FL, you will need a non res producer license, and maybe an agency non res license. If your commissions are being paid to the S Corp bank account, then you'll likely need the non res for the agency. That's how I am set up, and had to do it. Watch out for those appointment fees, they can sneak up on ya! Especially when you have to pay it twice, for the agent and the agency!

 

[KandKsmommy]

Thank you guys!

 

[Yagents]

FL charges $300 per year per carrier to be non rez agent for whole state, or u can pick a specific county for $8 per county.

I know UHC charges me $300 yr for med supps, and United American charges me $8 per county i write in.

I dont file state taxes in FL, and oh, its 0% anyways

 

[KandKsmommy]

FL charges $300 per year per carrier to be non rez agent for whole state, or u can pick a specific county for $8 per county.

Yikes, that seems like highway robbery. I will most likely just do the county the provider is located in and limit my offerings after I review the available plans. Thanks for the heads up

 

[Tahoe Ray]

Commissions for non res sales do not require other state income taxes, if that is what you mean.

At least I do not file income taxes in any other state for insurance commissions.

California requires it...Lincoln (life product but still) will actually deduct CA taxes from your commissions.

It's a giant PIA b/c they also report it to the state, meaning I have to file. I also had to file in Indiana this year for some stupid reason.

I am licensed in every state and those are the only two who have me do this but I'm going to guess it becomes more prevalant.

FL charges $300 per year per carrier to be non rez agent for whole state, or u can pick a specific county for $8 per county.

I am curious about this. I have a health license (for disability products) in FL and it's a license in perpetuity as long as you are writing business/appointed w/ a carrier in FL.

Is there a separate license to write ACA/Medicare in FL?

 

[sshafran]

I'm not shocked for some reason that California would want to tax non-res insurance sales.

 

[Todd King]

California requires it...Lincoln (life product but still) will actually deduct CA taxes from your commissions.

It's a giant PIA b/c they also report it to the state, meaning I have to file. I also had to file in Indiana this year for some stupid reason.

I am licensed in every state and those are the only two who have me do this but I'm going to guess it becomes more prevalant.



I am curious about this. I have a health license (for disability products) in FL and it's a license in perpetuity as long as you are writing business/appointed w/ a carrier in FL.

Is there a separate license to write ACA/Medicare in FL?

Most companies don't seem to keep track of this. If every company did this, we would have a ton of 1099s for CA. I have not seen a single one this year.

 

[Yagents]

I am curious about this. I have a health license (for disability products) in FL and it's a license in perpetuity as long as you are writing business/appointed w/ a carrier in FL.

Is there a separate license to write ACA/Medicare in FL?

The license is perpetual, but I guess it's an "appointment" fee that I'm speaking about.
It's $6 per county, but somehow UHC charges me $300 year for the whole state.

More info here:
https://myfloridacfo.com/division/agents/licensing/agents-and-adjusters/fees