Do I need to form an LLC?

[fun2drum]

This thread is very timely for me.
Up until now my accountant has advised me to stay a sole proprietorship. There would be no benefit to operating as LLC because, like him, I'm personally licensed and therefore not protected by a separate company.

Now I'm moving toward starting and growing an agency, therefore an LLC is in the works for my growing insurance business. The way I'm doing it is not expensive, going through a company that acts as my registered agent and does all the filing for a relatively small fee.

I didn't even think about needing separate E&O for the LLC, but it makes sense. I guess that's not too horrible in the scheme of things. Anyway thanks for the heads up on that one.

 

[Lawsonhj1]

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 would think that if the website is for "lead generation" and appropriate disclaimers are made then in essence the website is a marketing company. So if your fishing you can use multiple poles, different hooks and bait. What if you had 10 websites generating leads? So again just my thoughts is your intention to have the 1) the entity as the producer, or 2) the producer just using website as a source for leads?

 

[Markthebroker]

This thread is very timely for me.
Up until now my accountant has advised me to stay a sole proprietorship. There would be no benefit to operating as LLC because, like him, I'm personally licensed and therefore not protected by a separate company.

Now I'm moving toward starting and growing an agency, therefore an LLC is in the works for my growing insurance business. The way I'm doing it is not expensive, going through a company that acts as my registered agent and does all the filing for a relatively small fee.

I didn't even think about needing separate E&O for the LLC, but it makes sense. I guess that's not too horrible in the scheme of things. Anyway thanks for the heads up on that one.

I have one E&O policy for my LLC, and another for me personally. Frankly I would prefer to have one E&O policy, long story, I can't.

I would think you should be able to get E&O to cover the LLC, and all it's owners and employees. Again, long story, but we have one like that for the corporation.

 

[marindependent]

An LLC or Corporation may be able to help with some liability but certainly not all. Depending on the cost to build and maintain it may or may not be worth the time and money.

Without knowing more specifics its really hard to know.

 

[adjusterjack]

Now I'm moving toward starting and growing an agency, therefore an LLC is in the works for my growing insurance business.

Probably a good idea if you get to the point where you start having employees. Till then, optional.

Understand, though, that once you have an LLC a lot of the business that you do business with will want a personal guarantee on any obligations you agree to.