How to Start an Independent Insurance Business at Home
There are huge opportunities and minimal challenges when starting an independent insurance business at home. Low overhead and lots of tax incentives, not to mention the freedom of waking up in the morning and sliding into your office with a cup of coffee wearing your bedroom slippers, makes running your business from home very inviting.
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Instructions
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Obtain a license to sell insurance in your state. Choose from Life, Variable Annuities & Health and/or Property and Casualty license designations. The more licenses you have, the more customers you can have. Contact your state for information about basic requirements, what to study and where to sit for these exams.
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Incorporate your independent insurance business. Ask your accountant if it is beneficial to apply for an "S" corporation status from the IRS. With an "S" status, your corporation would not pay any corporate tax. All your net income would be taxed at your individual rate, which can be less than the corporate rate. Most single-owned corporations have "S" status.
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Open a post office box and have your business mail delivered at your local post office. This keeps from disclosing your home address, unless you intend on inviting customers to your home. Most independent insurance agents visit their customers at either their home or work.
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Get signed up with major insurance carriers. Familiarize yourself with their policies and coverages. Find out how they pay their independent agents and what their recurring commission fees are. These fees are based on the premiums your customers pay to be insured.
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Order your stationery, including letterhead, business cards and postcards. Use the postcards to mail to local businesses and residents. Invite them to call you to discuss their insurance needs and how you might be able to give them better coverage or lower their premiums.
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References
Resources
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