Setting up shop..

[GreenAgent]

Hi all,

I recently passed my NY LAH and was looking at getting licensed in NY as well as setting up shop to conduct business through and was wondering if I could have some wisdom from the forums!

My plan is to be an independent producer and primarily sell disability insurance and some life insurance (primarily term I would imagine). My ultimate goal is to obtain a CFP to also provide financial planning services (3-5 yr plan). I am only mentioning this in case it helps with the following questions -

Can someone explain the benefits of getting an individual producer license vs getting a business entity license? Does it matter from a liability standpoint (assuming there will be E&O insurance active). For what it is worth, I currently have another career and have some personal assets I would like to protect as much as possible. I would also like to take advantage of any tax benefits of running my own business (ie: hopefully if it turns a profit, I can contribute to various small business retirement accounts)

Should I just get my own independant producer license? or should I obtain a business entity license? (are these mutually exclusive, or does the business entity license require me to get the producer license first?)

Beside the literature available on the NYS site, are there any other resources that lay out steps for new producers? (I see the thread from DHK, however it primarily lists soft skills in selling rather than the practical aspects of setting up shop).

Thanks for any help.

 

[DHK]

Can someone explain the benefits of getting an individual producer license vs getting a business entity license?

There is no "versus". You have to have an individual producer license.

Now, if you want to set up an agency entity, you can do that, but you would be an individual producer for that entity.

Does it matter from a liability standpoint (assuming there will be E&O insurance active). For what it is worth, I currently have another career and have some personal assets I would like to protect as much as possible. I would also like to take advantage of any tax benefits of running my own business (ie: hopefully if it turns a profit, I can contribute to various small business retirement accounts)

There is NO asset protection when you are in a licensed profession. The reason you are licensed is so you can be held liable for your actions.

The only asset protection you can have with an entity is in the event of any staffing lawsuits and/or if you build a downline of agents and they get chargebacks that get rolled up to you.

 

[goillini52]

Hi all,

I recently passed my NY LAH and was looking at getting licensed in NY as well as setting up shop to conduct business through and was wondering if I could have some wisdom from the forums!

My plan is to be an independent producer and primarily sell disability insurance and some life insurance (primarily term I would imagine). My ultimate goal is to obtain a CFP to also provide financial planning services (3-5 yr plan). I am only mentioning this in case it helps with the following questions -

Can someone explain the benefits of getting an individual producer license vs getting a business entity license? Does it matter from a liability standpoint (assuming there will be E&O insurance active). For what it is worth, I currently have another career and have some personal assets I would like to protect as much as possible. I would also like to take advantage of any tax benefits of running my own business (ie: hopefully if it turns a profit, I can contribute to various small business retirement accounts)

Should I just get my own independant producer license? or should I obtain a business entity license? (are these mutually exclusive, or does the business entity license require me to get the producer license first?)

Beside the literature available on the NYS site, are there any other resources that lay out steps for new producers? (I see the thread from DHK, however it primarily lists soft skills in selling rather than the practical aspects of setting up shop).

Thanks for any help.

Good luck and welcome to the Forum.

 

[Alston]

I don't see a benefit of having an agency if you are the only agent in it.

I sell under my own SS# even though I have a small agency with 2 other agents.

My original reason for doing it this way was to make it easy to sell the agency and keep my own BOB when I go into semi-retirement.

I also save on extra paperwork and appointment fees. My son gets paid through my agency. Whenever I appoint him with a new carrier, the appointment fees are double and the paperwork is more complex.