Apparently selling an FE book is not an option?

[WinoBlues]

Pennsylvania

I was thinking if in one of my current states we could have a conversation.

 

[Ksutton]

I was thinking if in one of my current states we could have a conversation.

I have most of my business in PA. I’m licensed in 40 states and for the last few years I’ve been selling over the phone. So around 200-300 clients are all over the US.

I’d love to have a conversation if you are interested.

 

[PrivClientSG]

My preface to all this is that sometimes carriers "allow" you to sell your book of business, and sometimes they don't. If they don't, finding a way around that can be not only challenging, but very problematic.

That said, first, you would have to check with each carrier regarding the current renewals and see if they are "transferable" and/or "assignable" (to an LLC). Second, if they are, you would have to find out the terms and conditions of the renewals -- and if they are different being "entity" owned or assigned. Third, I would have an attorney and an accountant sitting by your side as you go through these due diligence steps. Thanks.

 

[Sam_Clemens]

I think the reason DBGA doesn't promote getting your LLC and running commissions to/through it is because your LLC has to be licensed in every state as well. So if you are licensed in 40-ish states (Which many tele-providers are), you have to DOUBLE that to set up as an LLC/scorp and then on top of that there are some states that make your jump through a lot of hoops and pay a lot of fees to register as a foreign LLC including having to get locally located registered agents, etc. We are talking an extra 6-7k in licenses and fees so your production has to be of a certain level in order for it to make sense and their model really focuses on cash flow and turning a profit immediately and then hopefully building over time to more long term things (like this I guess).

Now, that said, just like anything if after some time you are seeing the production is there, you know you are in this for the long haul, and you think you may even potentially want to scale up (or the other flexibilities/protections an LLC provides), then the switch over is actually not all that bad and the contracting admin of DBGA are pretty darn helpful.

If you can't tell from above I am just doing this now and I am under DBGA. My accountants told me "it is time" and so...well..there it is...I am in the thick of this process and although a major headache, it has mostly been issue-free and i just hope come tax-time it was worth it haha

 

[WinoBlues]

I have most of my business in PA. I’m licensed in 40 states and for the last few years I’ve been selling over the phone. So around 200-300 clients are all over the US.

I’d love to have a conversation if you are interested.

I am going to be traveling for a week Or so. But definitely up for a conversation after.

I am really not looking for a nation wide book.

One, now maybe two of my kids are looking to move to Texas. So Texas, maybe Virginia and California are going to be more of my focus.

 

[Ksutton]

I am going to be traveling for a week Or so. But definitely up for a conversation after.

I am really not looking for a nation wide book.

One, now maybe two of my kids are looking to move to Texas. So Texas, maybe Virginia and California are going to be more of my focus.

Shoot me a message when you are back and we can chat. Regardless the outcome It will be nice to say hi

 

[JRoot]

You'd sell your business, not technically your book. That's how all these IMO acquisitions are going down.

We've always recommended getting an LLC and a business bank account, just not getting licensed as an LLC because of what Sam says above.

 

[Sam_Clemens]

@JRoot the tax benefits only occur if the LLC is licensed and the agent becomes it's LOA (to my understanding).

 

[JRoot]

There's ways around it. Ping me in chat and I'll explain.