So I want to start recruiting, but I'm not getting in any hurry. I've been in the business 6.5 yrs and focused on Medicare for 2.5. Right now my contracts are spread all around. I've got some with National Contracting Center (NCC) out of Knoxville. I've got some with United Health Benefits (UHB). I've got final expense contracts with David Duford (I'll probably leave them alone). I've got a few other contracts that are with Christ Westfall which goes up through SMS (the Omaha bunch).
So I've got a handful of questions (and I'll have more as I learn more).
1. I've created an LLC here in TN. Is that the best format or should I look at an S Corp?
2. I would think there might be an advantage to getting all my contracts lined up with the same FMO. Is that accurate or does it matter at all?
3. I understand that I'll have to change all my contracts from individual agent contracts to agency contracts even if I stay with the uplines I now have. Is that correct?
4. I attended the recent Med Sup conference down in Atlanta and got an idea from one of the speakers there who spoke on succession planning. What I don't know is how much my idea depends on my uplines. So here's the idea. I've got this LLC so my commissions go to the LLC. If I get hit by the big truck and go sell Medicare supplements in the sky my LLC keeps getting paid. So I can use my LLC to extend the same benefit to other agents.
I know that would require assignment and I would put in a contract that I would release upon request (I've been burnt too and want to protect my trail, so I'm leery of assigning commission to anyone who won't release and I will put it in writing). Question...would giving a release depend in part on my upline or as the recruiting agent can I grant the release?
Let me give an example of scenario. A local agent I know is in their 70's and still dabbling at producing some because her upline is telling her that some of the big carriers require a minimum level of production to keep the trail of commissions coming in. IF they assigned those commissions to me...1. Would the override trail transfer to me? 2. Would their trail stay "solvent" if they did finally retire (that is would the Humana's and UHC's of the world still pay the LLC (my LLC) their commission? That is would the LLC's production keep their trail safe? 3. Since the LLC is paying and not the insurance company would they be required to keep their license and E & O in place (OR could I required that?)
That's a whole lot of questions so I'll stop for a bit and listen/read.
Thank you in advance for your input
So I've got a handful of questions (and I'll have more as I learn more).
1. I've created an LLC here in TN. Is that the best format or should I look at an S Corp?
2. I would think there might be an advantage to getting all my contracts lined up with the same FMO. Is that accurate or does it matter at all?
3. I understand that I'll have to change all my contracts from individual agent contracts to agency contracts even if I stay with the uplines I now have. Is that correct?
4. I attended the recent Med Sup conference down in Atlanta and got an idea from one of the speakers there who spoke on succession planning. What I don't know is how much my idea depends on my uplines. So here's the idea. I've got this LLC so my commissions go to the LLC. If I get hit by the big truck and go sell Medicare supplements in the sky my LLC keeps getting paid. So I can use my LLC to extend the same benefit to other agents.
I know that would require assignment and I would put in a contract that I would release upon request (I've been burnt too and want to protect my trail, so I'm leery of assigning commission to anyone who won't release and I will put it in writing). Question...would giving a release depend in part on my upline or as the recruiting agent can I grant the release?
Let me give an example of scenario. A local agent I know is in their 70's and still dabbling at producing some because her upline is telling her that some of the big carriers require a minimum level of production to keep the trail of commissions coming in. IF they assigned those commissions to me...1. Would the override trail transfer to me? 2. Would their trail stay "solvent" if they did finally retire (that is would the Humana's and UHC's of the world still pay the LLC (my LLC) their commission? That is would the LLC's production keep their trail safe? 3. Since the LLC is paying and not the insurance company would they be required to keep their license and E & O in place (OR could I required that?)
That's a whole lot of questions so I'll stop for a bit and listen/read.
Thank you in advance for your input