Question About Getting Incorporated

[napoleon83]

I just got into the insurance business. I am appointed with Aflac. So far I am finding it difficult but I want to do this as a career and have my own agency. I plan to be appointed with several companies. I want to do p&c and life/health. I am wanting to start my own agency and get incorporated.
My question is in regards to getting my business license. Once I do get incorporated (s corp or c corp) will I my self get appointed with different companies or will I have to get appointed under my business name and tax id number.
When it comes to E&O insurance will I personally need the insurance or will I have to get it under the business name?
I am still new to this whole thing and trying to learn as much as I can. Thanks for all the help.

 

[The Rabbi]

You will have to submit two contracts, one personal, one corp.

If you would be interested in the Medicare market part time, email me [email protected] with your contact info and we'll chat about the insurance business.

 

[xrac]

Learn to sell and forget this incorporation business license stuff for now. You do not need it to be appointed.

 

[IMO101]

One way to really complicate your life at this stage is to get incorporated. First you would need to obtain a state insurance license in your corporation name, if you truly want to be appointed as an entity with the various carriers. This costs money, takes time, and there are forms to fill out. It would be important to check with your state DOI first, to confirm the requirements.

Then, with many carriers, you will end up completing two contracts. One for personal, one for corporation. They will probably give you two agent numbers, and you will get two of everything in the mail.

It is also important to consider tax filings, far more complex, and something you probably would need to hire a CPA to help with. Not just at tax time, but on a year round basis.

One more issue is if you plan to sell in more than one state. If so, you would need to research corporation/entity licensing rules in any states that you plan to focus on. Some states make it easy, and in comes states, it is very expensive, and complicated.

All of this is very time consuming, and is a major distraction from what really matters at this stage. The most important thing to worry about is making your business successful, and really the business structure won't help you with that. Eventually, it may make sense, if you talk with a CPA and decide it is the best choice, all factors considered.

Of course you can do it first if you really want to, but usually this is the wrong path to go down when first starting out in this business. You will have plenty of paperwork, hoops to jump though, and priorities to juggle, without having to worry about the extra workload that being incorporated brings to the table.

My advice: Keep It Simple...

Best of luck to you.

 

[ctg]

I maybe off my rocker, but I'm going independent from the get go anyway. I'm a newby-changing careers. I have my Life/Health licenses with plans of commercial later, have formed a relationship with a broker agency (an aquaintance who will hold my hand-including getting E & O), and I am fortunate to have a triple threat brother-in-law/attorney/CPA. I have formed an LLC (for tax implications later) and will work out of my home office for now. Not a lot of start up funds but have budgeted some for marketing and buying leads. Literally just starting so I have no appointments from carriers yet. I'm just looking for cheers or jeers or any advice. At this point I'll take what I can get. Thanks for any time you can give me.