Do I need to form an LLC?

[Craumas]

If I'm creating a website and I'm an independent contractor and building a website for lead generation. Do I need to form an LLC or contact my states insurance department? I've tried looking for answers but can't find any information on it. I have a website built and I'm waiting to publish it, however I don't want to do any wrong steps.

 

[bboyd]

ALWAYS operate a business in a LLC or corporation. Not doing so opens you up to losing all your personal assets.

 

[Markthebroker]

I did want to bring something up important, though it doesn't address your question. If you are working as a 1099 for an agency and are covered under their e&o, creating your llc and creating your own website could get you excluded. I came across this issue when I tried to build a website at my first agency, then AGAIN at my second agency.

 

[PattyBurgers]

I was curious about something along this topic.

First year agent, was advised to create an LLC. I'm already appointed under my personal name and have my E&O under my personal name. Do I have to change the name on my E&O as well as my appointments to the LLC now?
Thanks for any help

 

[IsaacA]

^You probably would have to change everything.

 

[Reid Tattersall]

It would be wise to create an entity to limit your liability. I'm not sure if you need to be licensed if you are just doing lead generation though. I wouldn't display rates, take commission based payouts, or offer life insurance advice without a license. If you are in it for the long haul, getting your license and a license for your company will open up opporuntities for you.

 

[DHK]

While the OP is unclear, assuming that you are selling insurance from your website, YOU need to be licensed. An LLC will NOT protect a licensed individual's actions. (Hint: That's why you're licensed.)

The reason to set up an LLC... is if you are hiring employees who could sue you for employment issues... and/or you are contracting agents. There may also be some other advantages in the tax-code for setting up a separate entity.

But for licensed agents & advisors... an LLC does nothing to protect your assets from your own personal actions.

 

[adjusterjack]

But for licensed agents & advisors... an LLC does nothing to protect your assets from your own personal actions.

Exactly. And it gets worse. The member of a single member LLC is virtually indistinguishable from the LLC when performing services or doing business with others.

Should somebody decide that a lawsuit is appropriate it will likely be filed against the LLC and the individual member as co-defendants in an attempt to "pierce the corporate veil."

 

[James Cushing]

If you're operating only by yourself, having an LLC isn't necessary. It is a good idea, though. Having an entity protects you from some personal liability. In addition, if you plan to grow and take on other agents in a downline, having your entity contracted will work to your advantage. If you ever want to move up further, into the FMO/IMO world, then you really should have an entity.

 

[I_C_BROKE_PPL]

If your an Independent Agent, all your licenses are under your name and you want to create a website for lead generation....do you need to contact your state's insurance dept to amend your licenses to have you "doing business as" your websites name or do i keep licenses the way they are?