Best Legal Structure for a New Broker

[Usfootman]

Can any one suggest what would be the best way to start in insurance business?
I just passed my exam and havent applied for license yet.
Should i create an llc and apply for license for it or it is better to get individual license? I was thinking to get license and open a tiny office by my friends used car dealership, get appointed and start selling auto policies right away but people here say thats not how it works, that i have to work for someone for at least couple of years. can i work for agency or a brokerage being a company (i mean will they even hire me?)?
My residence state is NY. I need LLC just for personal assets piersing protection and liability protection. i dont think i'll be hiring any people.
Is there is a way to turn individual P&C license into corporate later in time or vice versa?
Or may be i dont need a corporate license at all? can i own an individual license and write policies on behalf of my company still having LLC protection?

 

[indienoise]

Been there and done that.
You might think its a cash cow waiting for you. At best, a partnership with even a large dealership is a way to keep the bills paid, but it's service intensive and won't have great retention. Now that I finally have some preferred markets, I'm in the process of transitioning - I'll keep serving the car lot crowd because I'm known in town for the nonstandard market and get a fair amount of referrals and can continue to grow that side, and there is money there, but now am focusing on building my preferred book. I don't want to spend the rest of my life on NSA.

But, not sure why you continue to solicit advice here if you ignore what you've already received. Or why I keep responding, for that matter.

 

[DHK]

You must have an individual license... period.

Whether or not to have a business insurance license... is another story. And no, you don't convert your individual license into a business license.

The only reasons to incorporate or form an LLC is to protect yourself should you employ others or possible tax breaks. That's it.

As a licensed insurance agent, you are always responsible for your recommendations, so you won't get any legal protections against your individual acts. (Hint: that's why you're licensed in the first place.)

 

[agentinsouth]

Can any one suggest what would be the best way to start in insurance business? I just passed my exam and havent applied for license yet. Should i create an llc and apply for license for it or it is better to get individual license? I was thinking to get license and open a tiny office by my friends used car dealership, get appointed and start selling auto policies right away but people here say thats not how it works, that i have to work for someone for at least couple of years. can i work for agency or a brokerage being a company (i mean will they even hire me?)? My residence state is NY. I need LLC just for personal assets piersing protection and liability protection. i dont think i'll be hiring any people. Is there is a way to turn individual P&C license into corporate later in time or vice versa? Or may be i dont need a corporate license at all? can i own an individual license and write policies on behalf of my company still having LLC protection?

There is a reason your E&O is going to be so expensive! Your setting yourself up for failure and/or a lawsuit. go work for a Liberty Mutual, FB, or someone like that.

 

[Usfootman]

Been there and done that.
You might think its a cash cow waiting for you. At best, a partnership with even a large dealership is a way to keep the bills paid, but it's service intensive and won't have great retention. Now that I finally have some preferred markets, I'm in the process of transitioning - I'll keep serving the car lot crowd because I'm known in town for the nonstandard market and get a fair amount of referrals and can continue to grow that side, and there is money there, but now am focusing on building my preferred book. I don't want to spend the rest of my life on NSA.

But, not sure why you continue to solicit advice here if you ignore what you've already received. Or why I keep responding, for that matter.

i didnt ignored you. for some reason i couldnt post in other discussion we had anymore (technical issue i guess). as the matter of fact i appreciate your input.
im not looking at it as on a cash cow, i have well paying job, so this would be just to make my auto sale more convenient for me and my customer and get couple bucks on top of that. im getting that tiny office for free so there are no bills for now.
i dont really understand what possibly can go wrong with just selling an auto policy if it is from respectful insurer. they all ask the same: give the cheapest just to let me be allowed on the road.

 

[Usfootman]

for some reason i can not answer to indienoise so he thinks im ignoring him