Do I Need to Start a Corporation to Start My Own Agency?

[gemman61]

Hi, new to insurance, but have been a business owner for 20 years. I just got my P&C License in NYS and am wondering if I should start a corporation to use as my entity, or is something simpler advisable?
Thanks!

 

[Stephen]

First things first: Hire a good CPA to help you get your Inc., LLC, or S-corp set up.

 

[WBF]

I just went through all of this. Before meeting with my CPA I thought I would go the s-corp route. After meeting with my CPA and another discussion we opted to go the LLC route because of the ease of the filing requirements. At the end of the day the annual fee is higher in Tennessee, but I will save money on what I am paying my accountant. I spoke to three other independent agents that all had gone the LLC path too.

 

[SWM]

I have always used LLCs. You can set it up yourself through Legal Zoom. Good luck

 

[iiinycboi]

gemman, if you do LLC, dont forget the 6 weeks of publishing it, or your LLC will become void. I think legal zoom does NOT do the publishing for you.

 

[gemman61]

Thank you to all for your advice, I appreciate it. Another question, do I need 2 separate bank accounts for an agency? One for operating expenses and one for premium deposits?

 

[iiinycboi]

yes you do

the basic is you need separate account for customer funds, "no commingling funds"

and one operation/expense account.

the premium account should only be for insurance payment, transfer net commission out, and interest out if you have a interest account.

 

[gemman61]

Thanks! All advice is welcomed and appreciated!

 

[xrac]

Do you need a corpotration? The answer is maybe or maybe not. Discuss this with a GOOD CPA and perhaps a good attorney and then decide.

 

[nycpc2012]

gemman, if you do LLC, dont forget the 6 weeks of publishing it, or your LLC will become void.

Only applicable to NY law.