Getting Set Up to Start in This Business

sams66 · 12-17-2008, 08:00 AM

All, Happy Holidays! I have some questions that I hope you guys could shed some light on. I will be starting with Mass Mutual looks like towards end of January 2009. I really like the office I will be working with and they have been very helpful.

I know this will be my practice. I was wondering if I should form an LLC and run my vehicle, expenses and other things through that LLC? Is it too early on for that if I am just starting? Should I purchase car insurance and other business related expenses through the LLC? What do some of you do to keep the business separate from personnel purchases?

I was advised to get a business Mastercard/Visa and purchase any expendibles etc through that.

Mass Mutual senior reps and the GA there have been outstanding and very helpful during this process. Any other thoughts would be greatly appreciated.

Thanks and have a great Holiday season to all

Sam

Newby · 12-17-2008, 09:37 AM

I don't fully understand the hows and whys but my insurance business operates under an S-Corp and my real estate is owned by my LLC.

It was set up by my attorney and my wife who is a CPA so hopefully it's not set up that way to make it easy for my attorney to run off with my wife!

Here is a link about Corps vs. LLCs

Corporation and limited liability company comparison - LegalZoom.com

Originally Posted by sams66

All, Happy Holidays! I have some questions that I hope you guys could shed some light on. I will be starting with Mass Mutual looks like towards end of January 2009. I really like the office I will be working with and they have been very helpful.

I know this will be my practice. I was wondering if I should form an LLC and run my vehicle, expenses and other things through that LLC? Is it too early on for that if I am just starting? Should I purchase car insurance and other business related expenses through the LLC? What do some of you do to keep the business separate from personnel purchases?

I was advised to get a business Mastercard/Visa and purchase any expendibles etc through that.

Mass Mutual senior reps and the GA there have been outstanding and very helpful during this process. Any other thoughts would be greatly appreciated.

Thanks and have a great Holiday season to all

Sam

sams66 · 12-17-2008, 10:03 AM

Thanks, much appreciated. I will be working under the Mass Mutual umbrella, I guess I was wondering about all the ancillary costs and items related to being an agent for a firm like Mass Mutual.

Sam

moonlightandmargaritas · 12-17-2008, 10:13 AM

Originally Posted by sams66

Is it too early on for that if I am just starting?

Yes, I believe it is.

Concentrate solely on building new clients. If you don't, it'll all be moot anyway.

All the "infrastructure" stuff can be worked out later on. Don't waste money on tertiary stuff...use it for marketing to build your business.

Newby · 12-17-2008, 10:25 AM

I agree with Moonlight. I was about 7-years in before i did any of that. Just open a separate checking account and credit card that are separate from your personal and get started.

sams66 · 12-17-2008, 10:39 AM

Thanks alot guys! much appreciated.

Sam

SportsNut · 12-17-2008, 11:17 AM

Originally Posted by Newby

I don't fully understand the hows and whys but my insurance business operates under an S-Corp and my real estate is owned by my LLC.

It was set up by my attorney and my wife who is a CPA so hopefully it's not set up that way to make it easy for my attorney to run off with my wife!

The S-Corp is used because of taxation, and the ability to pass thru to shareholders income as dividends, which avoids self employment and medicare taxation, or 15.3% on each dollar of dividend income, versus earned income.

The LLC is used because it is harder to levy against assets owned within the LLC. Hard to obtain a charging order against an LLC that has multiple members, and collections and liability can only be assessed against distributions from the LLC, as a general rule.

I would also imagine that your S-Corp owns little in the way of assets... so that is the part that you will get to keep after the Atty and Wife abscond with the asset rich LLC...

OR, maybe it is such that your two trusted advisors, wife and Atty, have simply done a great job of implementing the asset plan, so that if and when you have a liability problem over a claim for liability or from a creditor, your ass(sets) in pretty good shape.

yellow · 06-28-2009, 04:43 PM

Hello - are you still with Mass Mutual? I am interested in getting on with them on the Broker side. I have gone to the website several times and requested a contact, with no reply. Do you know who I might speak wtih?

Thanks