I am considering opening an independent, one-owner insurance agency. Has anyone done this, and if so, what biz/tax structure did you use? S-corp? LLC? Which and why?

This is one of the most FAQ on Quora. Please see below article from our blog.

Overall, it depends on your projected income or losses initial few years. I would highly recommend that before setting up your entity you understand how profits or losses are handled.

For one member business, usually either LLC with a sole proprietorship or LLC with S Corporation are most popular. S Corporation involves payroll compliance and taking a reasonable salary. Starting out as an LLC with sole proprietor is the easiest way to get started. As you grow and are able to take a salary as owner employee you can elect S tax election for your LLC.

Again these are general guidelines. Every situation is different and is based on your long term goals, financial projections etc.

 

** Based on our response to a question posted on quora.


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