Using an LLC

[ARHfinacial]

yes, that was my initial plan, to at least foreign file in the neighboring states where it's conceivable I could physically meet a client to conduct business. I can just see the expense down the road really adding up if you start adding 10, 15, 20 states to the mix but all you do in the majority of those states is sell virtually.

 

[DHK]

I have not contacted my attorney yet to research this and whether telesales, virtual sales over Zoom, etc. are an exemption to intrastate business statutes. I believe for most states the common understanding is they are exempt if that is the ONLY business you do within the state and do not maintain a physical office or hire W2 employees within the state.

While not legal advice, I'll save you the call and the expense.

They're not.

It's all based on their state of residence. If I'm in California and you are in Minnesota, and I want my LLC to be paid the commission on business we do, I'd need my business entity licensed for Minnesota, a personal insurance producer license for Minnesota, and then the company to appoint me (both the business entity and my personal license) in Minnesota.

The people you'd need to contact isn't your legal advisor. It's the company's licensing and compliance department to get your procedural advice from.

And yes, you need to be licensed as of the date the application for new business is signed. Can't do it after the fact. If you do, you'd have to get everything re-signed again.