S Corp Vs. LLC ??

[VolAgent]

In my view -- the reason for incorporation is both taxation AND to avoid personal liability. I'm offering health, life, & financial products. If someone wants to sue -- I'll bet they go after both E&O and would sue me personally to get at my personal assets. $1M isn't much when you look at healthcare 'situations'. Consult an attorney to see if an LLC or S-Corp can keep your assets safe.

Any attorney who tells you that a LLC or S-Corp will keep your assets safe when you personally screw up is an *** and should surrender his license. You are personally liable for every application you sign your name to. Now if you have an agency or a place of business, that is different. A corporation can help shield your personal assets from their actions or slip and falls, etc.

 

[Agent_Healer]

Which Legal Entity is Best for your Insurance Agency? | AgencyEquity.com

 

[VolAgent]

Which Legal Entity is Best for your Insurance Agency? | AgencyEquity.com

Did you actually read it?

 

[Agent_Healer]

@VolAgent -- your post assumes actual personal negligence/error. There are highly litigious people who look for soft targets and invent reasons to file suit for settlements. A business entity is like a lock on a door-- makes a target a bit less 'soft'

 

[Agent_Healer]

Did you actually read it?

Did you get up on the wrong side of the keyboard, or what? Yes, I do read the articles I post.

 

[VolAgent]

@VolAgent -- your post assumes actual personal negligence/error. There are highly litigious people who look for soft targets and invent reasons to file suit for settlements. A business entity is like a lock on a door-- makes a target a bit less 'soft'

Please read what I wrote. I distinguish between the two. For the individual agent, your biggest liability are errors or omissions, whether covered by an E&O policy or not. For an agency with more than one person, then you get into many more risks, and a good GL policy would make sense. And the corporation does a lot for the owner(s) in limiting liability.

 

[somarco]

Any form of business entity (including corp) is only as good as the person running the business. If you co-mingle funds, use the business bank account as your person pot of money, etc your personal assets can be forfeited.

 

[VolAgent]

Any form of business entity (including corp) is only as good as the person running the business. If you co-mingle funds, use the business bank account as your person pot of money, etc your personal assets can be forfeited.

Yep, had a nice discussion with my attorney about all this when I set up my agency.

 

[marindependent]

Wow, what a complicated subject. I am not an attorney, but here goes.

Sole Prop- Simple, Cheap to Set Up, No ability to Save on Income Taxes.

LLC- Not as Simple as SP but prob simpler than S Corp, Ability to Save on Income Taxes
You can file as either S election or LLC election. Simpler incorporation rules. LLC and individual expenses must be kept separate. May have to pay state incorporation taxes.
In order to save on taxes may require company appointments.

S- Corp - Most complicated, must follow corporate law. No option on election, May be able to save on taxes. S Corp and individual expenses must be kept separate. May have to pay state incorporation taxes. In order to save on taxes may require company appointments.

 

[sshafran]

S- Corp - Most complicated, must follow corporate law. No option on election, May be able to save on taxes. S Corp and individual expenses must be kept separate. May have to pay state incorporation taxes. In order to save on taxes may require company appointments.

Yes. Every contract I set up is agent/agency, with the agency getting paid. In Ohio, my agency had to be appointed (or so I was told, but oddly, some carriers never appointed the agency). Other states, it is not the case (for instance, in NC, they don't appoint the agency - so there is no appointment fee).