Getting Company Life&health Licensed As Opposed to Individual

[CFP83]

I have held my Ohio Life&health license since 2003, however I am wishing to going forward, contract with carriers through my company which I have set up as an S-corp. So my question is what is required from me to get this set up? Is it simply paying fees and doing an application with the state of Ohio?

 

[TwiLight]

I have held my Ohio Life&health license since 2003, however I am wishing to going forward, contract with carriers through my company which I have set up as an S-corp. So my question is what is required from me to get this set up? Is it simply paying fees and doing an application with the state of Ohio?

YEP..... goto NIPR Home Page and apply for a Corp Resident License.

I think the fee in OH is $20-40 bucks.

You must have the entity licensed to receive commission in the corp name.

 

[MikeRobinson]

Wish you all the best with your endeavors to succeed in the life field. It's a great thing to help families leave a legacy.

 

[CFP83]

YEP..... goto NIPR Home Page and apply for a Corp Resident License.

I think the fee in OH is $20-40 bucks.

You must have the entity licensed to receive commission in the corp name.

Thanks for the quick reply!

I assume this is something that requires renewal fee's, just like my agent license...?
The big question is, will I have to do the continuing education requirement (in ohio its 20hrs every 2 years) for both myself and then again for my company?

 

[TwiLight]

Thanks for the quick reply!

I assume this is something that requires renewal fee's, just like my agent license...?
The big question is, will I have to do the continuing education requirement (in ohio its 20hrs every 2 years) for both myself and then again for my company?

Yes, fees are renewed in OH too I believe.... Contact your DOI to be sure.

The CE is only on you. A company license has a DLR (Designated Licensed Representative) than must be compliant for CE to maintain the license. YOU

 

[CFP83]

Yes, fees are renewed in OH too I believe.... Contact your DOI to be sure.

The CE is only on you. A company license has a DLR (Designated Licensed Representative) than must be compliant for CE to maintain the license. YOU

Thanks TwiLight.....I got on the NIPR site this weekend and got it taken care of.

I am curious to hear from any of you that do get/have been licensed with carriers as a company as opposed to individual.....what are the advantages? Why did you get appointed as a business and not individual?

From other agents I've spoken with I'm hearing "because my accountant told me to" or "another agent said it was a good idea".

 

[Newby]

Thanks TwiLight.....I got on the NIPR site this weekend and got it taken care of. I am curious to hear from any of you that do get/have been licensed with carriers as a company as opposed to individual.....what are the advantages? Why did you get appointed as a business and not individual? From other agents I've spoken with I'm hearing "because my accountant told me to" or "another agent said it was a good idea".

I'm licensed as an agency because I have a business partner (Travis). We keep agency commissions separate from each of our own personal production.

Some states are very difficult to appoint your agency. Ohio is not one of them. Some will require a legal proxy in the state .

To license one agent and the agency in all 50 states would cost you around $30,000 every two years.

 

[TwiLight]

Thanks TwiLight.....I got on the NIPR site this weekend and got it taken care of.

I am curious to hear from any of you that do get/have been licensed with carriers as a company as opposed to individual.....what are the advantages? Why did you get appointed as a business and not individual?

From other agents I've spoken with I'm hearing "because my accountant told me to" or "another agent said it was a good idea".

I use a C-corp (holding company and subsidiary model), although an S-Corp is good for most Agents.

My initial reason was for succession planning in the event of my death and the proper accounting of a larger scale business model.

 

[Tkruger]

One thing to keep in mind is that if you are non res licensed in other states that you'll have to obtain the agency non res as well to offer products as an agency in those states.

Something else to note is that you will want to check with the Secretary of State for each state you are getting your agency appointed in. Some states require a filing to the SOS and others do not. Drilling down to find out if the State SOS requires a filing or not will be the biggest challenge.

 

[TwiLight]

One thing to keep in mind is that if you are non res licensed in other states that you'll have to obtain the agency non res as well to offer products as an agency in those states.

Something else to note is that you will want to check with the Secretary of State for each state you are getting your agency appointed in. Some states require a filing to the SOS and others do not. Drilling down to find out if the State SOS requires a filing or not will be the biggest challenge.

Good point. FL, TX and VA are sticklers for SOS filing if you produce as an agency.

TX filing fees are extremely high. Last I checked...$750/year for SOS filing for a foreign Corp registration. If this is the case, look into filing for an LLC instead. Much lower.

In TX I actually filed an LLC as a Domestic LLC with the ownership as my Agency Corp. Contracts were set up as my personal production in TX only goes to the LLC and an override to the agency.... The agency did not have to file with the SOS as the LLC was the actual producing entity and overriding Entities don't have to file with SOS.

Now Virginia, it does not matter, your Entity License is tied to keeping your SOS filing up to date. The fee is low, but you must have a resident agent for your entity, which costs $60-150/year depending on which service you use for Resident Agents.