newbie2001
Expert
- 45
Hi, like the title asks, I am in FL. Do I need an agency license in order to recruit downline? I will not be paying commissions to the agents they will be 1099'ed by the carrier.
Agency License Required to Recruit Downline?
- Thread starter newbie2001
- Start date
- 5,941
No.
- Thread starter
- #3
newbie2001
Expert
- 45
Ok, I am being told that because I have a downline agent I need an agency license.
Whoever is telling you that is wrong.
- 2,623
If you are getting compensation for the sales, you "may" need a license. I emphasize "may" because that's a question you should be asking of your insurance licensing department.
- 5,941
You don't need an "agency" license. You may need a "non-resident" producer license in certain States in order to receive Over-Ride commissions on your downline agents if you have some in other States than your Resident State.
- 11,277
It is not required to have an agency or more specifically an entity license to recruit. If it was, all the MLM companies would scare people with all the costs associated with it.
If you are a sole proprietorship, you don't need it.
However, if you want to separate your personal assets from your business liabilities in the event of chargebacks, and/or contract disputes, and/or hiring staff... you may want to consider another business entity, such as a corporation or LLC and have that entity licensed as such.
If you are a sole proprietorship, you don't need it.
However, if you want to separate your personal assets from your business liabilities in the event of chargebacks, and/or contract disputes, and/or hiring staff... you may want to consider another business entity, such as a corporation or LLC and have that entity licensed as such.
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