Perhaps building an insurance business has always been your lifelong dream. Although this may be a great investment, the process involved in getting your independent agency off the ground would require you to do a lot of planning and hard work. To help you turn your dream into reality, you may have to enlist the help of an insurance agent consulting professional.
How You Can Start a Successful Insurance Agency
Create a Solid Business Plan
Your roadmap for success is a solid insurance agency business plan. It reflects your level of commitment to your investors, insurance carriers, and employees. With a business plan, you’ll be able to set your goals, identify risks, steer clear of potential roadblocks, and determine financial resources and needs. You may adjust your business plan over time after you launch your insurance agency.
Select Your Legal Structure
Remember that the amount of personal liability you decide to take on will be determined by how your business is structured. Some of the legal structures you can choose from include:
- Sole proprietorship
- Limited Liability Company (LLC)
- S Corporation
Choose Your Agency’s Name and Register It
By default, your business’s legal name is going to be your own name if you’re a sole proprietor. Different states have specific naming restrictions, be sure to check with your Secretary of State’s office first. As soon as you’ve chosen a name that meets your state’s requirements, don’t forget to register it with your state’s government.
Get a Tax ID Number
For filing taxes, the IRS requires you to use a federal employer identification number (FEIN). For this reason, you should get a tax ID number. This number will also be used to open a credit card of a business bank account. Sole proprietors may use their Social Security numbers.
Looking for Insurance Agent Consulting Services?
If you’re ready to launch your insurance agency, Energia Consulting Partners LLC is here to provide expert guidance. Schedule an appointment with our team today!