When is an Agency License necessary?

[newbie2001]

Hello,

I am curious when it is necessary to obtain an agency license. Based on FL statutes it is hard to tell.

I have an LLC that I opened so that I may have a business bank account and then filed a DBA name for the LLC. I have been told I need to file for an agency license in FL. I also use my DBA name on my business cards instead "John Smith - Independent Agent". Keep in mind I have a brick and mortar office if this makes a difference

I operate as an independent agent with one active 1099 downline agent under me.

Please advise as I don't want to have any compliance issues. Thanks!

Here are the FL Statutes: [EXTERNAL LINK] - Statutes & Constitution :View Statutes : Online Sunshine

 

[Tahoe Ray]

Hello,

I am curious when it is necessary to obtain an agency license. Based on FL statutes it is hard to tell.

I have an LLC that I opened so that I may have a business bank account and then filed a DBA name for the LLC. I have been told I need to file for an agency license in FL. I also use my DBA name on my business cards instead "John Smith - Independent Agent". Keep in mind I have a brick and mortar office if this makes a difference

I operate as an independent agent with one active 1099 downline agent under me.

Please advise as I don't want to have any compliance issues. Thanks!

Here are the FL Statutes: [EXTERNAL LINK] - Statutes & Constitution :View Statutes : Online Sunshine

Who do you want your commissions going to, your EIN or your SS#?

If you want them going to your LLC's EIN, then get an entity/agency license and assign your commissions to your agency.

 

[newbie2001]

Who do you want your commissions going to, your EIN or your SS#?

If you want them going to your LLC's EIN, then get an entity/agency license and assign your commissions to your agency.

Based on what I’ve read it appears that if I operate under this LLC’s name then it also must be licensed.

Have you come to the same conclusion?

 

[adjusterjack]

I suggest that you call up the licensing agency and ask that question.

But, yes, I think the agency will also need to be licensed.

 

[marindependent]

What @Tahoe Ray said.

Please advise as I don't want to have any compliance issues

Well - I would buckle up and expect there to be problems. Not sure about "compliance issues" - but this will be screwed up no matter how hard you try, sorry to say. Think of it as a journey, not a destination.

There are some insurers/vendors that will pay you via an LLC and others that will only pay you under your own name.

If you want to get real value out of the LLC, all of the payments, all of the business transactions, all of the markeing etc - have to go through the LLC, not your own name.

QQ on this - why does your LLC operate under a DBA name? That could really make things more complicated.

 

[newbie2001]

What @Tahoe Ray said.


Well - I would buckle up and expect there to be problems. Not sure about "compliance issues" - but this will be screwed up no matter how hard you try, sorry to say. Think of it as a journey, not a destination.

There are some insurers/vendors that will pay you via an LLC and others that will only pay you under your own name.

If you want to get real value out of the LLC, all of the payments, all of the business transactions, all of the markeing etc - have to go through the LLC, not your own name.

QQ on this - why does your LLC operate under a DBA name? That could really make things more complicated.

Because my original LLC which the state would not accept for an agency license due to “misleading name” is how all of my clients know me.

I just haven’t taken the time to do a complete rebrand yet.

All of my business expense go through the LLC currently but it’s a mixed bag on how carriers pay me. Some are under the agency name and some are under my personal name.

 

[marindependent]

Got it! That I understand. So Id ask your attorney on this, but I would make sure the DBA is listed as owned by the LLC in your corporate documents and I would likely use the DBA AND LLC name on the bottom or all emails and or paperwork.

I also wonder, and Id ask your attorney, if your Brick and Mortar lease [or ownership] needs to be in the LLC name as well.

Best of Luck

 

[newbie2001]

Got it! That I understand. So Id ask your attorney on this, but I would make sure the DBA is listed as owned by the LLC in your corporate documents and I would likely use the DBA AND LLC name on the bottom or all emails and or paperwork.

I also wonder, and Id ask your attorney, if your Brick and Mortar lease [or ownership] needs to be in the LLC name as well.

Best of Luck

Sounds like I need an attorney!

 

[axeman462]

if you are running everything through an LLC, you should really have the agency license. In Florida its super simple to get, and the costs are minimal.

The LLC is really on beneficial for liability reasons. And then again more beneficial once you start getting into higher tax brackets and start filing as an S corp.

 

[DHK]

The LLC is really on beneficial for liability reasons.

Not true for your own acts. That's why you have a license - so you can be held liable for your actions and recommendations.

Tax-planning, yes, there can be some advantages there.

If you hire employees, it can limit your liability in the event of an employee lawsuit.

If you contract other agents, it can limit your liability for chargeback risks to business assets.

No liability protection for your own acts as a licensed agent.