When to License As an Agency?

[NMB Katie]

I've operated as an independent broker since 2010. I'm now interested in recruiting and training other brokers. I don't intend on hiring any employees. I have an LLC established. At what point to I need to license with NIPR as an agency? What is the actual benefit of an "agency" license? Don't need that to get an override!

Thanks!

 

[cgreene]

I got mine right away because it was explained to me if you are doing business as the agency you need to have the license in that state but the LLC does not need to be registered unless you have a physical location in the state.

 

[NMB Katie]

Thank you for your reply. Question: Did you just do the lines of insurance? It wouldn't be managing general agent, right?

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p.s. where are all of the smart ass old men? I should have gotten a half cocked answer hours ago

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Figured out that last question...don't even know why I was overthinking that one! LOL Thanks again!

 

[pfg1]

I've operated as an independent broker since 2010. I'm now interested in recruiting and training other brokers. I don't intend on hiring any employees. I have an LLC established. At what point to I need to license with NIPR as an agency? What is the actual benefit of an "agency" license? Don't need that to get an override!

Thanks!

I know plenty of guys that do exactly what you are talking about and none license their actual business, only have their personal license. Might be different if you had employees, but unless your state requires it I don't see any reason to do it based on what you are talking about doing. Just extra time money ce, etc.

 

[NMB Katie]

I know plenty of guys that do exactly what you are talking about and none license their actual business, only have their personal license. Might be different if you had employees, but unless your state requires it I don't see any reason to do it based on what you are talking about doing. Just extra time money ce, etc.

Appreciate the input. That's always been what I thought then a carrier I am re-appointing with asked me if i wanted to appoint my agency at the same time so I said sure and got thrown off with the agency app questions. I ended up doing it online last night. Only $10 per line here in Ohio so not too far of a lost...until renewal and CE etc. lol oh well....

Follow up question...I will be writing a lot of business in Indiana this fall. based on you original advice here I am guessing I should just forego licensing agency there, yes? Really do appreciate your input. Feel kind of zilly not knowing these answers at my level of experience!

 

[pfg1]

The only advantage that licensing your agency gives (to my knowledge) is the ability for all carriers to pay your company directly vs. you as an individual producer. Most agents/advisors probably don't need this.

I have an S-Corp (for personal reasons best fit for me) and some carriers will deposit directly to my business account, some will only deposit to my personal account. (Their rules).
If they deposit to my personal acct, I just online transfer immediately the deposit over to my business account. That way all commissions flow through my business account, makes it easy for accounting purposes.

I receive personal 1099's end of year in my name from the various carriers based on total production, doesn't matter what state the business was in. These amounts match what has flowed through my business account, so accounting is easy. I don't need a 1099 to my actual company. Typical personal producers (even with a big downline) don't really need to license your business/agency in addition to yourself. Just need the non-res producer license in any non-res states.

 

[cgreene]

It really depends how the business is set up.