An Easy Guide to Starting Your Own Insurance Agency
Running your own insurance agency gives you a lot of freedom and flexibility—but it can also be a daunting prospect, particularly if you aren’t sure where to begin. Luckily, there are a number of resources that can help you get started. So how do you start your own insurance agency? Here’s a quick guide.
First of all, you need to be a licensed insurance agent. This is the most obvious prerequisite, and one that you may have already completed. If not, be sure to do some research on licensing requirements in your area.
Make a Plan
Secondly, create a business plan. This is a crucial step that will help you create a blueprint for how to open an insurance agency. The business plan should identify your leadership, products and services, potential customers, target market, partner companies, risks, financing, predicted budget, and even competitors and your advantages over them.
Choose a Name
Third, choose and register your agency’s name. Pick something memorable but easy to search; generally shorter names are better.
Get a Tax ID
Next, register with the IRS and get a tax ID number. This will ensure that you can pay your taxes correctly without getting in trouble.
Choose a structure for your agency—do you want to be a partnership? Corporation? LLC? Each has its own advantages and disadvantages. Once you’ve made that decision, it’s time to register with the state you live in. They may have a checklist you’ll need to follow to become fully registered.
Get Licensed (Again)
Be sure that you get insurance and any licenses you need. You may need a general business license in addition to your insurance agenting license.
Finally, be sure that you have all the resources you need to run your business. This might include things like agenting software or an underwriting service such as Superior Access. With a little preparation, you’ll know exactly how to start an insurance agency.