Independent Agency Entity Type LLC, DBA, INC?

Discussion in 'Getting Started Selling Insurance' started by entrep1776, Jun 17, 2017.

  1. entrep1776
    Offline

    entrep1776 Well-Known Member

    Posts:
    260
    Likes Received:
    0
    Any help/advice on what kind of entity to establish?

    I currently have a sole proprietor for my rental business. Which was fairly inexpensive.

    I think it's about $400 to incorporate in Illinois. Which I want to avoid $400.

    Would a sole proprietor be ok to get started? in IL have to advertise in newspaper for Doing Business As (DBA) before being able to get bank account opened. Maybe E&O cheaper with LLC? or less liability?

    Appreciate others experience.
     
  2. DHK
    Offline

    DHK Well-Known Member

    Posts:
    6,081
    Likes Received:
    24
    State:
    California
    http://www.insurance-forums.net/forum/general-insurance-agent-discussions/llc-necessary-t80980.html

    Because you are a licensed individual responsible for your advice and actions, there is no 'asset protection' available for your actions as an insurance agent - regardless of the line of insurance you sell.

    There may be other reasons to form an LLC or a corporation, such as if you hire employees (assistant, CSRs, etc). If employees were to sue you, you could be protected by having a business entity because such a suit would be separate from your actions as an insurance agent.

    Just my thoughts and not to be taken as legal advice.
     
Loading...

Share This Page