Hey guys thanks you taking your time time to look at my question. I getting my Life Insurance license not sure how I should go about setting my self up as a LLC or Sole Prop. A few people I have talked to are sole props but I feel like LLC should be a better way to go for tax purposes I currently have a full time job in the car industry but always looking for a side hustle this seems like something that can generate a good income part time and have some good tax write offs (solo 401k, cars, gas, business travel with family ) . My wife is going to be helping me also with the business . Thanks for any advice you can give me love the podcast listen to it every week.
Not an expert (so confirm everything), but here you go: A single member (even with spouse) LLC gives you ZERO tax benefits that you do not get as a solo-prop. A single member LLC’s main attraction is its liability protection but the IRS treats it as a disregarded entity, meaning, they see it as a solo-prop so no tax advantage. That said, it might still be a good idea to limit some of your liability. You might also look into getting malpractice insurance or an Error and Omission’s policy in case you make a mistake in writing an insurance policy and they look to sue you for screwing it up (whether you did or not).
Covered on our Year-end Open Forum Show on Dec 23. Please check it out for the answer to your question. Thank you! Mark and Mat.