I've gone into business with a friend of mine working as Licensed Insurance Producers for an insurance agency, call it XYZ agency. We are both working as independent contractors and will be filing a 1099. Our Errors & Omissions insurance is provided by XYZ.
We originally wanted to set up an LLC to protect our personal assets while maintaining profits and expenses under the LLC's name. When filing the Articles of Organization it was rejected saying we needed sign off from the Department of Insurance. Not sure where to go from here, since we would not be doing business as the LLC I would imagine the Department of Insurance would not recognize the LLC and the main concern is keep our personal assets protected from the business operations. Any advice would really be appreaciated.
The insurance industry is highly regulated. You can't open an agency without approval from your state department of insurance nor can you personally sell insurance unless you are licensed by them. If you are currently working as an agent for a company, you may not be able to open a separate agency. A phone call to your department of insurance should provide the information you need. If you are able to register your business with them, then you can register your business entity type.
Some types of businesses cannot be formed as LLCs; insurance companies may be one of them.
The insurance industry is highly regulated. You can't open an agency without approval from your state department of insurance nor can you personally sell insurance unless you are licensed by them. If you are currently working as an agent for a company, you may not be able to open a separate agency. A phone call to your department of insurance should provide the information you need. If you are able to register your business with them, then you can register your business entity type. Some types of businesses cannot be formed as LLCs; insurance companies may be one of them.
Thanks for chiming in BizResearcher.
Cburke127 - Did you find this helpful?
BizResearcher | Window Shopper | 11/8/2009 - 10:31 pm
NicoleD | Former Moderator | 11/12/2009 - 2:54 pm
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