Sign up for email updates from SBAReceive helpful business tips and upcoming events in your area.


Privacy Policy
Log in to SBA.gov:
Enter your SBA.gov username.
Enter the password that accompanies your username.

Community Header Banner

Starting a partnership in Insurance

by joelong12, Performer

  • Created: January 22, 2011, 7:49 pm
Share:
3 comments

Hello,

 

I have a friend that wants to start a insurance brokerage with me. I am not sure if we should start a LLC, LLP, or what. Does anyone have any good advice? We are in IL and we will own and operate evenly and will hire agents to work under us.

 

Thanks

Tags: Discuss Popular Topics, Self Employed & Home Based Business
‹ How Many Online Business Showcase their Accepted Payment Methods Starting a partnership in Insurance ›

ChristineL | Former Moderator | 4/7/2010 - 8:35 am

Thank you Forclosedhomes and BizResearcher for your valuable input! Check out our business incorporation guide to learn more about the pros and cons of different business structures and how to form them. Here is the Illinois Small Business Guide that may be helpful.

ForeclosedHomes | Window Shopper | 4/7/2010 - 4:51 am

you should check with your local dept of insurance to see if there are any state laws governing insurance firms. If possible an llc makes good sense, but from memory i think there may be restrictions on limited liability structures for some financial services industries
avoiding a foreclosure is something everyone wants to do - if you're facing foreclosure get educated and you just might save your home.
Professional Web Site: http://www.equityconsultants.org

BizResearcher | Window Shopper | 4/7/2010 - 8:01 am

Show Replied Text…
you should check with your local dept of insurance to see if there are any state laws governing insurance firms. If possible an llc makes good sense, but from memory i think there may be restrictions on limited liability structures for some financial services industries
As the previous poster mentioned, you should begin with your state department of insurance to be certain that both you and your partner and your firm are properly licensed. The insurance department can also tell you what entity forms are legal for insurance businesses in IL. In my state, an insurance company cannot register as an LLC; they must be a corporation. Because there are two of you, you will also need a legal partnership agreement that covers how the business will be operated, who will make certain decisions, and provide an exit strategy should one of you leave the business, become incapacitated or die. An attorney that specializes in businesses can create an agreement for you and draw up incorporation or LLC paperwork as well.