jasperjohns
Super Genius
- 198
can commissions be assigned to another entity (s Corp or LLC) owned by an individual that does NOT have an active insurance license?
Assignment of commissions
- Thread starter jasperjohns
- Start date
COULD be a state by state thing. In Georgia, I assign commissions to my agency/corp. The agency has a DOI license but also requires an individual (me) to have an active life/AH license.
- Thread starter
- #3
jasperjohns
Super Genius
- 198
Yes. Currently I assign all commissions to my S Corp. curious if I can assign to a company with my brother, or wife or 4th cousin for that matter who does not have a insurance license. If I leave business and have no active license can the person I assigned comp to continue to collect?
I don't think you can but it may be state specific.
My general feeling is SOMEONE in the corp needs to have an active license including AHIP
Honestly I never knew the advantage of an llc over a sole proprietor tax wise . I write everything a Corp can write off .An llc really doesn’t shield you like liability wise and you have E&O
- 6,994
We only pay the self employment tax on what we actual pay ourselves through payroll. Everything else we take as distributions are not charged the self employment tax.
Or fica maybe too.
The answer you are seeking is in your agent's contract, not the laws that government corporate entities.
Your agent contract with the company will tell you what happens at your death. Whether you assign them to a corp or not doesn't matter.
From the insurance companies perspective, they owe you comp based on the contract. When you croak, it doesn't matter to them if you assign them to Joe Biden or to Aaron Rodgers. Some will pay unlicensed heirs, some will do so for a period of time. Some will end the payments right then.
Your agent contract with the company will tell you what happens at your death. Whether you assign them to a corp or not doesn't matter.
From the insurance companies perspective, they owe you comp based on the contract. When you croak, it doesn't matter to them if you assign them to Joe Biden or to Aaron Rodgers. Some will pay unlicensed heirs, some will do so for a period of time. Some will end the payments right then.
What is the company structure? S corp, C corp, LLC, etc?
Each entity is treated differently.
Caveat - not an accountant just a forum gadfly . . .
It doesn't matter the entity when assigning commissions. His question was whether he could assign to keep the flow of commissions going after he died. That depends on the agent's contract not tax law.
There may be a few companies that might, but I doubt it. Renewals are also about service. No agent, no service, no renewals.
I have only seen a company say that the assignee has to be licensed. Never the opposite.
