Captive to Independent. Can I Create my Own Entity?

Discussion in 'General Insurance Agent Discussions' started by MisterBill, Aug 6, 2017.

  1. Jeff Biesen
    Offline

    Jeff Biesen Member

    Posts:
    11
    Likes Received:
    0
    I am told forming a Corporation is better than the LLC if you will be taking a salary. It’s a questions best suited for your CPA, of course. Becoming an independent agent has more positive than negative issues, good luck.

    Jeff Biesen
    Owner of JBI Insurance Group
     
  2. FLM2
    Offline

    FLM2 Well-Known Member

    Posts:
    3,238
    Likes Received:
    0
    State:
     
    Make up whatever scenario you like to satisfy your own internal need to feel like you are right but I never implied anything about a C Corp or anything else. I simply stated my choice, gave reasons for that choice, and suggested the OP consult with a professional.

    If you want to give the OP advice in an area where you are not qualified by license or education that is your choice, do you do the same thing for your clients when they ask for tax advice?
     
  3. MisterBill
    Offline

    MisterBill Member

    Posts:
    6
    Likes Received:
    0
    I appreciate the passionate answers on this forum. It shows me that people are confident in the advice they provide. There is always different ways to skin a cat. It is my job to weed through the responses that most fit my goals. Thank you.
     
  4. scagnt83
    Offline

    scagnt83 Well-Known Member

    Posts:
    6,525
    Likes Received:
    27
    State:
    South Carolina
    I'm not giving advice. Advice would be telling him to choose one over the other, or to set up a 401k or not set one up. Im not telling the OP what to do. I am sharing facts about business entities and retirement plan contribution regs.

    I stated FACTS about 401k contribution regs (they are the same for all 3 of the commonly used entities). Facts are facts.

    I gave my OPINION about the pros/cons of the various types of business entities and how they affect an insurance agent or small business owner.


    The OP asked for reasons to use one entity over another. You shared one of your reasons for choosing a C-corp. But that "reason" applies to all 3 main types of business entities. So it is not an issue that the OP needs to consider, as that "reason" is the same for all 3.

    That's not tax advice, it's a fact about Retirement Plan Contribution Laws.
     
    Last edited: Aug 8, 2017
  5. thomasm
    Offline

    thomasm Well-Known Member

    Posts:
    1,120
    Likes Received:
    2
    State:
    Nebraska
    Focus on sales and building a book now. Worry about entities and tax strategies later.

    Remember, if you do create an entity, that means dual licensing costs; an agency license and producer license. That starts to get expensive when you need to license 35+ states in order to generate enough lead flow online.
     
  6. MisterBill
    Offline

    MisterBill Member

    Posts:
    6
    Likes Received:
    0
    Thanks thomasm. That is what I will do. If I just register a DBA would I need that licensed?
     
  7. scagnt83
    Offline

    scagnt83 Well-Known Member

    Posts:
    6,525
    Likes Received:
    27
    State:
    South Carolina
    Best advice so far. Nothing else matters if you don't have the sales.

    Start as a sole proprietor and see what your income and cash flow is like. Then you have real life numbers to use to find out which business entity best suits your needs.
     

Share This Page