Getting set up as an agent - checklist

A few people have asked me about how to get set up. Here ya go:

1) If you want to use an agency name you need to file it with your DOI. You'll also need to file a fictitious name with your state. If you're a sole proprietor you do not need an EIN - you can use your social.

2) Use a business email - not something like paulybear33_1983@yahoo.com. Never use a free email account like Yahoo or Hotmail. It's unprofessional.

3) For heaven's sake set up your voicemail. I can't tell you how many agents I call and get "leave a message." That's not a professional recording. I swear I called an agent once and got "you know what to do."

4) Get a fax service - I use Efax but there's many others. It's well worth it not to worry about paper jams, running out of toner, error messages or poor quality.

5) Get a website and DO NOT do it yourself. Nothing looks worse then someone trying to design their own site - unless of course you're a professional web designer.

6) Have some type of system to back up your data; client info, leads, etc...I upload my docs and files into my Comcast account. If I crash I don't lose anything. I'd use some kind of online system - backing everything up with a flash drive or something like that won't be of any use if there's a house fire. It's not only crashing I need to worry about. What if I have 3 appointments tomorrow and the power goes out? I can just call my sister, have her log into my Comcast account and she can get me the app't information.

7) Get some type of database management. I use YIO - http://yourinsuranceoffice.com and recommend it.

8) Get cards. You get get free cards at Vistaprint.com It you want to design your own cool cards or choose from more templates I use printsmadeeasy.com

9) Buy thank you cards. Every client should get a hand written card.

10) Set up a business account at your bank. If you're buying any type of leads, be it shared or telemarketed I highly recommend using a debit, not credit card tied to your business account with a very low balance. Why? Many agents, including me, have been mis-billed for leads. You don't want to be in a situation where you have a legitimate dispute an in the mean time you get hit for $1,000. If I know $300 is coming out of my business account I have that available. If someone tries to hit it for $1,500 the transaction simply won't process.

11) Set yourself up correctly for taxes. You need to file quarterly. If anyone is telling saying that you don't need to file quarterly and you can pay yearly just call the IRS. With almost no exceptions unless you're a W2 employee you owe quarterly: http://www.irs.gov/businesses/small/article/0,,id=110413,00.html

12) Keep an expense log, file all your receipts. The most audited group of people (not businesses) in the country now are at-home self-employed. If you're deducting mileage you need to keep a log. Obviously you need receipts for any expense. When in doubt use a reputable CPA to file your returns. If anyone is giving you any type of tax advice and they are not a licensed tax professional always verify the information. It won't be them getting a letter from the IRS.

And lastly, a tip. Do NOT pre-pay any more than $100 for leads. I've seen some vendors demand $500 down, others demand a full month upfront, etc...No way.