S Corp Vs. LLC ??

Discussion in 'Getting Started Selling Insurance' started by liquidblue33, Oct 31, 2008.

  1. liquidblue33
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    liquidblue33 Well-Known Member

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    Wanted to get some opinions on Incorporating or forming an LLC. Is one better than the other for the insurance industry? I don't plan on having any employees. At least not anytime soon.
     
  2. joshril
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    joshril Well-Known Member

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    What's wrong with a sole prop? What is your reasoning for looking at incorporation?
     
  3. liquidblue33
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    liquidblue33 Well-Known Member

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    I'm not opposed to a sole prop. I just have people keep telling me that i should inc. or form an LLC. My thing is, i'm new and just getting ready to start marketing. Independent of course. I want to come up with a name to use on flyers, web site and etc. Can i just register a fictitous name? Somebody told me to register an agency with the Dept. of Insurance i had to Inc. or form the LLC???
     
  4. joshril
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    joshril Well-Known Member

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    I'm not sure how it works in FL, but in TX, you can just register an assumed name and file that with the state. Once accepted by the DOI, flyers, website, business cards, etc. are good to go...

    Since you're starting out, it probably makes sense to go with a sole prop and re-evaluate after things take off.

    What line of insurance do you plan to offer?
     
  5. xrac
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    xrac Well-Known Member

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    There are plenty of reasons to incorporate. I am not a lawyer so I won't go into all of the reasons but a big one is that you can park your commissions inside the company. Pay yourself a reasonable salary as an employee of the corporation and can also pay yourself dividends out of any excess profits. If done properly the dividends will not incurr medicare and FICA taxation. You can also personally buy a vehicle and lease it to back to your corporation. The lists gones on. Based upon what I know I would go S Corp.
     
  6. joshril
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    joshril Well-Known Member

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    In agreement that incorporation makes sense for a successful business, but it costs money. In my opionion, the money used on incorporation would be better spent on leads, marketing, etc.

    Incorporation can make sense, but is most certainly not a necessity in the beginning.
     
  7. myinsurebiz
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    myinsurebiz Well-Known Member

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    LLC offers less restrictions with just about the same personal protection. No meetings, minutes, etc with an LLC . . .

    Tom
     
  8. joshril
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    joshril Well-Known Member

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    If the OP can tell his why he is looking at LLC's and S-Corps, we can give better advice. If it's only about having an assumed name, sole prop makes the most sense to start out... Sole prop with E&O there should be no big liability issues...
     
  9. liquidblue33
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    liquidblue33 Well-Known Member

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    Yea, i do agree with all the benefits of the s corp and LLC. But for now, i was just looking for the fastest way to get started and keep it legal of course. I will initially be focusing on Individual Health because i can go B 2 B for cheap advertising. Once i get of the ground and can afford the leads i want to get more into Life.
     
  10. joshril
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    joshril Well-Known Member

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    Sole prop! Get an assumed name and file it with the DOI (once again-not sure of the process in FL).
     

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