Creating an Agency

[SeaSideJB]

I have a few questions regarding agency creation.

Unfortunately I was kind of forced to create an LLC early on into Medicare career. I've been told I shouldn't form an agency unless I have people ready to sign on with me. In my eyes I don't really see why I wouldn't. From my understanding I can use the agencies appointments as my own and I would be fully prepared to add agents when necessary. Does anyone with experience in this topic care to share some information?

 

[axeman462]

I have a few questions regarding agency creation.

Unfortunately I was kind of forced to create an LLC early on into Medicare career. I've been told I shouldn't form an agency unless I have people ready to sign on with me. In my eyes I don't really see why I wouldn't. From my understanding I can use the agencies appointments as my own and I would be fully prepared to add agents when necessary. Does anyone with experience in this topic care to share some information?

nothing wrong with having the LLC. creates a layer of liability protection for you if used properly. And if you are in a higher tax bracket, you can claim S corp selection on your taxes to save on your tax bill.
Of course, consult a professional CPA and/or lawyer for proper protection and tax advice...

 

[NumbersGuy]

Always a good idea to set up an agency. In the unfortunate case that something happens to you it's the best way to protect your book of business - for most carriers the business would belong to the corp, meaning a family member could do a principal change and take over the book. Not always possible or easy to do under an individual appointment.