Starting New Agency

[lifeagent87]

Hi everyone! I am starting a new health insurance agency in California and will be working out of my house to start up.

Couple of questions:

1) How should I form my business? LLC, Corporation, Sole Proprietorship. I am leaning towards Sole Proprietorship because to start I don't want to pay $800 LLC tax, and I do not have assets or property yet.

2) Will I need a business license with the city I reside in to operate insurance agency?

3) If I do form as sole proprietorship, should I register my new insurance agency name with Department of Insurance? Will they let me since it is not LLC or corporation?

Thanks for the help everyone. I am new to the forums and I am very excited to start my agency. I have a book of business with the old agency I used to work with so I have residuals coming in already.

Wish me luck!!

 

[WinoBlues]

Welcome to the forum.

What part of California are you in?

Lee

Hi everyone! I am starting a new health insurance agency in California and will be working out of my house to start up.

Couple of questions:

1) How should I form my business? LLC, Corporation, Sole Proprietorship. I am leaning towards Sole Proprietorship because to start I don't want to pay $800 LLC tax, and I do not have assets or property yet.

2) Will I need a business license with the city I reside in to operate insurance agency?

3) If I do form as sole proprietorship, should I register my new insurance agency name with Department of Insurance? Will they let me since it is not LLC or corporation?

Thanks for the help everyone. I am new to the forums and I am very excited to start my agency. I have a book of business with the old agency I used to work with so I have residuals coming in already.

Wish me luck!!

 

[bree4479]

If you run your business as a Sole Proprietorship the name of your agency will be the name listed on your insurance license. You should consult and attorney about how to set up the entity. They will advise you on what you should do make sure they have an insurance back round.

I would not limit your self to just life and health if your going to get licensed this about getting your P&C as well with just life and health you are limiting your selling opportunity. Multi-line agents have a much higher rate of success. Being able to offer home auto life health and business insurance just sets you up for a better chance for success. Also if you want to make it in the insurance world start thinking more like 8am to 8pm that is what it will take foe the first five years. Good luck.

 

[lifeagent87]

Bay Area. Thanks for the warm welcome! Where are you from?

 

[WinoBlues]

Bay Area. Thanks for the warm welcome! Where are you from?

I am in the Central Valley. Started in Pleasanton during the stone age. Had an office in San Ramon. Still do a lot of business in the East and South Bay. In Oakland and Alameda tomorrow.

 

[lifeagent87]

Hey Lee, that sounds great. I have been in the industry for 3.5 years working under somebody. It is time for me to start something of my own. I will be working in the same areas so I guess we are competitors! It's good for us, keeps us honest at what we do.

Yeah I am in Oakland and Alameda all the time. Would love to pick your brain, but I understand if you are not comfortable with that since we really are competitors. I am looking for mentors in my life, I am 29 years old and every great person I read about always mentions having a mentor or mentors.

-Brian

 

[WinoBlues]

Hey Lee, that sounds great. I have been in the industry for 3.5 years working under somebody. It is time for me to start something of my own. I will be working in the same areas so I guess we are competitors! It's good for us, keeps us honest at what we do.

Yeah I am in Oakland and Alameda all the time. Would love to pick your brain, but I understand if you are not comfortable with that since we really are competitors. I am looking for mentors in my life, I am 29 years old and every great person I read about always mentions having a mentor or mentors.

-Brian

Hi Brian,

Happy to help.

>>It is time for me to start something of my own.

Absolutely maybe. Or not. Huge question. One only you can answer. There a lot of agents on here that can give you some ideas. However, none are going to pay your rent. If it all goes sideways. Having some renewals coming in is a big plus.

I am a life guy so on health I no clue. I have a buddy in your area that is a big hitter in health. He is looking to transition to life.

>>Would love to pick your brain, but I understand if you are not comfortable with that since we really are competitors.

That is not me. There is close to 40,000,000 million people in California. You take half and leave me half. Now I am also licensed in Texas. I am taking most of that.

I would definitely prospect your own area. Alameda county is probably 1.75 million. But I would start with that health book. Someone is selling them. Maybe me. I have gotten three calls for quotes from Oakland and Union City today. Do you know Mr and Mrs Thom...............

Hit me up anytime,

Lee
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Just thought of something, Which FE carriers do you have?

 

[lifeagent87]

Thanks Lee! Mr. and Mrs. Thomeezatheus called me too for quote, but I will politely withdraw my candidacy to become their agent.

I am just so excited for this new step and have been coming up with a business plan for past few weeks. Really appreciate the support!

 

[WinoBlues]

Thanks Lee! Mr. and Mrs. Thomeezatheus called me too for quote, but I will politely withdraw my candidacy to become their agent.

I am just so excited for this new step and have been coming up with a business plan for past few weeks. Really appreciate the support!

Funny, Last name first, you are not far off.

Business plan? Sounds cool. How many paid apps?
Crusty old dudes do not make good mentors I am afraid.

 

[lifeagent87]

What do you mean by paid apps? Also what is fe carrier?

Crusty old dudes make the best mentors!