Partnering with a non ins company how do I pay?

[DaKine]

Question: How do I pay

I am partnering with a non insurance company who is looking to hand their clients off as part of a need that they have. The company basically has an independent team out looking for businesses to refer, to their sales guys, for the products they sell. However, often there is a need for insurance as part of their needs for the added services. My company would be partnering with them and running the insurance side of the calls. The business would be placed through my company. Big question, how do I pay the company? They want to take part in a percentage of new and renewals of their clients. It's a referral fee and its not as I am not being referred business, I am part of their pitches to their clients but, I am also not paying unless I write business. Also, I am not paying an individual, I would be paying a corp.

I cannot find any answers to this anywhere.

Don't pay them. They said they NEED insurance to complete their deal. There is no need to pay them for it. As far as LLCs get ready for new reporting requirements coming in 2024.

[EXTERNAL LINK] - FinCEN Issues Final Rule for Beneficial Ownership Reporting to Support Law Enforcement Efforts, Counter Illicit Finance, and Increase Transparency | FinCEN.gov

 

[scagnt83]

Easiest way is to have someone in their firm get licensed and just put them on the app. It could just be a salaried employee.

Other method would be to establish a separate LLC and run the biz through that... however... you would need to stick with carriers that allow you to use 2 different writing numbers.

Imo, keep it simple