Foreign LLC's & Non-Resident Taxes

[WaSucks]

Hello,

I've been searching on this forum, google, making calls to state departments and I cannot seem to find accurate & consistent information. These are the questions I'm trying to get answered.

Background: I'm a longtime resident producer out of WA State. I'm captive (currently) and my LLC is appointed with the company. I'm personally appointed/affiliated with my LLC. I understand that my LLC needs to get a producer license in the non-resident states I'll be operating in (AZ, ID, OR), and I'll also need to be personally licensed. I'm only waiting on 2 states (ID & OR) to approve my LLC license and this step will be complete, and I suspect these will be approved within the next 3-5 business days.

Questions:

1. Do I need to register my LLC with the Secretary of State in the non-resident states that I'll be operating in? I will have no physical presence in these states, nor any employees in these states. Any business conducted would be virtual.
   
   
2. Will I need to pay taxes on any commissions earned as a result of sold policies in these states?

It's pretty crazy how much conflicting information is out there in regard to this and how things vary so much from state to state. Is someone able to advise where I might get accurate info, or does anyone happen to know the answers to my questions?

Regards,

Jason (WaSucks)

 

[GoPokes]

I only have a health & life license.

I have a similar setup currently, Individual producer license, & agency license for my S Corp.

I have a non-res license for each, in each state I sell in.

I do not believe that you need to register with the Sec of State in each state. Your LLC is registered where it is located, in WA.

When it comes to paying the taxes, the question is where are you physically located while doing the work and earning the money. If you are in WA physically, then you pay the taxes for that state.

 

[marindependent]

One Question for you - How much business, percent, relative to the total are you writing in each of these states?

Do I need to register my LLC with the Secretary of State in the non-resident states that I'll be operating in? I

You should ask this question to the DOI of each individual state regulator.

Will I need to pay taxes on any commissions earned as a result of sold policies in these states?

Id ask your CPA this question. Do you enter those states to do business or is this phone sales simply?

Part of the reason that there is conflicting information is that there are 60 different reguators involved here. Heck its complicated enough just in the one state of California to do this.

Also another important question are you a One Person LLC or do you have Employees and will those employees be conducting business in each of these non resident states and will they have non resident licenses?

 

[Tahoe Ray]

Even if you're don't conduct the business from there, CA will literally steal "their" taxes right out of your commission check in the case of several carriers if you write one of their residents.

 

[WaSucks]

One Question for you - How much business, percent, relative to the total are you writing in each of these states?

A: Very little, mainly just assisting current clients that have property in these other states, and the ones that are fleeing WA.

You should ask this question to the DOI of each individual state regulator.

A: I have, and they keep giving me the run around. Idaho has been pretty easy to work with and I got an email from the NAIC and Idaho SOS (shortly after the LLC license approval) that I would need to register my LLC as a foreign entity. No such emails for Oregon or Arizona.

I'd ask your CPA this question. Do you enter those states to do business or is this phone sales simply?

A: Nope, only phone.

Also another important question are you a One Person LLC or do you have Employees and will those employees be conducting business in each of these non resident states and will they have non resident licenses?

A: I'm a single member LLC and will have no physical presence in any state besides my resident state, at least for now. No employees currently, as I'm competing with fast food joints that pay over $20.00 per hour. Not to mention a huge commission cut (25%+) by the company I've been representing for the last 14 years.... It's my thank you for years of service!