Setting Up an Agency

Jan 12, 2009

  1. ///MJay
    Offline

    ///MJay Expert

    Posts:
    96
    Likes Received:
    7
    Hello,

    There is so much great info on the site thank you to every one for all the great insights to this business. I have a quick question. I work for a life company that I am a captive agent for. This company also has an agency and brokerage that we sell other carriers products (they get a cut too). For life production I am a w-2, for agency 1099. My question is could I set up my own company or agency and take full advantage of the 1099 side of things? When setting up such a venture what are some good resources to use? Would an LLC work? Those are the types of things I am wondering.

    Thanks in advance

    Jason
     
    ///MJay, Jan 12, 2009
    #1
  2. jsrconcepts
    Offline

    jsrconcepts New Member

    Posts:
    13
    Likes Received:
    0
    State:
    Georgia
    You should look into Creating a Sub Chapter S Corporation . That is the best way.
     
  3. Josh
    Offline

    Josh Retired Agent, Current List Broker

    Posts:
    11,789
    Likes Received:
    72
    State:
    Virginia
    I think someone else on here had the exact same situation you did.

    There is really no tax advantage to incorporating unless you have large earnings and plan on w2ing yourself off of it. When you're getting 1099'd you can write off expenses such as phone, mileage, marketing, office space, etc, but only if you're not being reimbursed for it. Those deductions are all the same whether your an LLC or a sole prop. If you're getting 1099'd on more than $40k/year then you should talk to an accountant, but odds are they'll just tell you that unless you quit your w2 job and make enough money to pay yourself a salary out of the corporation you probably wont have any real tax advantages (other than deducting the cost of incorporating).

    What agency do you work for? Did someone tell you there are advantages to incorporating?
     
    Josh, Jan 23, 2009
    #3
  4. hlink20
    Offline

    hlink20 Super Genius

    Posts:
    136
    Likes Received:
    0
    State:
    Alabama
    This would really depend upon your relationship with your agency/GA. Without additional information about the specifics of your relationship, your question is difficult to answer.
     
    hlink20, Jan 30, 2009
    #4
  5. bree4479
    Offline

    bree4479 Expert

    Posts:
    41
    Likes Received:
    1
    You should ask an attorney what to set up along with an accountant.
     
    bree4479, Sep 16, 2010
    #5
Loading...