Business Entity Question

Aug 23, 2015

  1. cgreene
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    cgreene Guru

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    Independent agents that operate in multiple states how did you setup your business entity in states where your office is not located. I have set up an LLC in my home state and want to make sure I do it correctly in my non resident states.
     
    cgreene, Aug 23, 2015
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  2. Thad.Sipple
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    Why did you set up an LLC? Is it a single person LLC?

    You need to get the Corp or LLC licensed in your resident state, and then do a non-resident licenses for the Corp or LLC, which is considerably more expensive than as an individual.
     
  3. cgreene
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    Yes because it's just me.

    ----------

    Sorry got cut off already have LLC in home state but thinking of doing sole proprietorship in states where I don't do much business.
     
    cgreene, Aug 23, 2015
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  4. Thad.Sipple
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    Single person LLC will not help (generally speaking) in anyway.

    Non-res as individual is way cheaper the LLC or Corp.

    If your not grossing over 150k ++ then no point to Corp or LLC.

    Just my opinions based on experience.
     
  5. mvinsurance
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    mvinsurance New Member

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    I think you cannot be sole proprietor in other states if you are already an llc in one. May be wrong though.
     
  6. cgreene
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    Ok but I would need to once I hit that any way which I expect in second year.
     
    cgreene, Aug 23, 2015
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  7. Thad.Sipple
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    Correct but look into Corp, not LLC.
     
  8. cgreene
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    Just have to find out if nonresidents agency license is required for either of these entities for states where there is no location or if non resident individual will work.
     
    cgreene, Aug 23, 2015
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  9. pfg1
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    Since you have your business set up in your resident state, just get non-res individual insurance licenses in the states you want to do business in.

    I would not license your company, that is not needed in most cases. Once you have the non-res ins licenses you are good to go. All commission 1099 income flows in (to you) and falls under your business (llc, s-corp, etc) for accounting purposes.

    Setting up businesses and /or getting your company licensed in non-res
    states will make a lot more work and isn't really necessary in almost all cases.
     
    pfg1, Aug 24, 2015
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  10. cgreene
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    Thanks I think they explained to him if I want to market my company in that state I need to have an agency license.
     
    cgreene, Aug 24, 2015
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