Company Equity Splitting

[ncarroll6]

Hello and thank you for the help.

My first question regards my partner and I. I am getting into Group Benefits (health/dental/vision). I have a partner who is in another field but has an excellent business network. He is not licensed in health insurance...I obviously am. If I gave my partner 10% of my company for access to his network is that legal? 10% of all my commissions, not just the ones I got from him. He would be apart of my company. The only reason I am iffy is because he is not licensed and I think this seems like "commission splitting" but he would also be working with business development, company structure, etc.

Secondly, if this legal could I bring this into an insisting structure. For sake of an example say my Uncle owned a small Group Benefits business and told me I could use his office/ secretaries/ credited business name etc. to begin my practice and build my book. I wouldnt be paid by my uncle or use any of his book, just his infrastructure etc. Could I still bring my partner into this type of set up or would I need to develop a new LLC. to clearly define this 10% partner 90% me structure.

Sorry for the long post and I appreciate your help!

Nick

 

[scagnt83]

He needs to be licensed to share in a % of profits from insurance sales.
You could pay him a set salary for being an employee. But the salary nor bonuses could be contingent on sales.

 

[FL P&C Broker]

I am not 100% sure but I think in Florida an unlicensed partner or in-active member of an insurance agency is allowed to own a certain amount of equity in the company. You could not pay them based on the gross sales for policies they specifically referred, but they would eligible for distribution just like a managing member would be.

There has to be some way to get around it because there are a couple agencies around me that are investor owned and I know all of the investors aren't licensed.