Starting a Business As an Independent Life and Health Insurance Agent

[samantha91]

I am very curious to ask those who started their buisness by going the llc route or eventually incorported. This would be my first post and its something ive been thinking about starting in this fied.i would love to start my own buisness down the road when i get the funds for it. I want to give myself 6 months of hard hard work, selling out in the field and then i want to incorporate myelf. My questions to you,
What is the steps to forming an llc as an independent agent?
I will be working out of my home, how may i go by that?

I do appreciate any advice, thank you.

 

[DHK]

This is not legal advice.

However, why incorporate? There is NO liability protection for incorporating or forming an LLC for your activities. That's why you get licensed... to show that you are liable for your work.

The advantages of incorporating/LLC are:
1) tax advantages
2) a marketing name (but you can do a DBA or "Fictitious Name Statement" and have it filed with your state)
3) business continuation

In short, you're putting the cart before the horse. Get started and get going. Get some sales under your belt and make sure this is right for you. Keep meticulous records and then get the advice of a CPA &/or attorney in your state.

 

[xrac]

I am very curious to ask those who started their buisness by going the llc route or eventually incorported. This would be my first post and its something ive been thinking about starting in this fied.i would love to start my own buisness down the road when i get the funds for it. I want to give myself 6 months of hard hard work, selling out in the field and then i want to incorporate myelf. My questions to you, What is the steps to forming an llc as an independent agent? I will be working out of my home, how may i go by that? I do appreciate any advice, thank you.

Don't worry about anything but learning to sell. Only incorporate after you have a well established business. There is no need of doing it unless you are producing more than $40-$50k.

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Don't worry about anything but learning to sell. Only incorporate after you have a well established business. There is no need of doing it unless you are producing more than $40-$50k.

There is no rush, no pressing need. Incorporating at the start is getting the cart before the horse.

 

[Gooner]

I don't know what state you're in, but you can form a LLC for a couple hundred bucks. I'll play the role of contrarian here...spend the money, form an LLC. Worst case you spent a couple hundred, it's better than the alternative and you kill it and have to scramble to get an LLC before your first paycheck.

You don't form a LLC in insurance for the protection, it us mainly for taxes...IMO.

 

[GreenSky]

I don't know what state you're in, but you can form a LLC for a couple hundred bucks. I'll play the role of contrarian here...spend the money, form an LLC. Worst case you spent a couple hundred, it's better than the alternative and you kill it and have to scramble to get an LLC before your first paycheck.

You don't form a LLC in insurance for the protection, it us mainly for taxes...IMO.

In CA it costs about $1K to form an LLC. Even if you pass the income through to yourself, there is a minimum $800 tax on the LLC.

I guess it's yet another reason that CA sucks.

Rick

 

[Gooner]

In CA it costs about $1K to form an LLC. Even if you pass the income through to yourself, there is a minimum $800 tax on the LLC.

I guess it's yet another reason that CA sucks.

Rick

Damn, but you've got nice weather.

I'd still recommend the OP get the LLC...you either commit to a business or you don't. Those that don't fully commit are usually the ones that wash out. It also helps to have a little 'pain' when starting a new business. It makes you hungry...again...IMO

 

[GreenSky]

Damn, but you've got nice weather.

I'd still recommend the OP get the LLC...you either commit to a business or you don't. Those that don't fully commit are usually the ones that wash out. It also helps to have a little 'pain' when starting a new business. It makes you hungry...again...IMO

I'm pretty much committed to insurance and got rid of my LLC.

Rick

 

[Gooner]

I'm pretty much committed to insurance and got rid of my LLC.

Rick

So you just take 1099's from the companies?

 

[Jerard]

... but you've got nice weather.

Yea, but we have better oranges.

 

[GreenSky]

So you just take 1099's from the companies?

Yeah. Although the feds allowed me to add a schedule C for the LLC, CA requires a separate filing. Just wasn't worth the hassle.

Even if I passed through all the net income, I still had to pay and extra $800 tax.

Yeah, we're really friendly to business.

Rick