How many CPAs must be licensed for the firm to participate in non-variable insurance and annuity commissions?
State requirements and legal opinions vary, so CPAs should consult their own counsel for specific answers. Here are the opinions of two experts: “Unlike securities commissions, which can only be paid to individual licensed securities representatives, life insurance commissions can be paid to properly structured separate entities of CPA firms. It is generally permissible for the entity’s owners to charge it for reasonable shared overhead costs and in some cases, it is permitted to remit net profits to the entity’s owners. However, this entire area is fraught with traps and gray areas, which are best evaluated through the advice of a qualified attorney.” Walter M. Primoff, CPA, and Robert L. Gray, CPA CPA Guide to Structure and Regulation of a Financial Planning Practice “According to Steve Insel, professional practices partner at the Los Angeles law firm of Jeffer, Mangels, Butler & Marmarow, ‘the best way for CPA firms to operate an insurance practice is to create a separate limited li
State requirements and legal opinions vary, so CPAs should consult their own counsel for specific answers. Here are the opinions of two experts: “Unlike securities commissions, which can only be paid to individual licensed securities representatives, life insurance commissions can be paid to properly structured separate entities of CPA firms. It is generally permissible for the entity’s owners to charge it for reasonable shared overhead costs and in some cases, it is permitted to remit net profits to the entity’s owners. However, this entire area is fraught with traps and gray areas, which are best evaluated through the advice of a qualified attorney.” Walter M. Primoff, CPA, and Robert L. Gray, CPA CPA Guide to Structure and Regulation of a Financial Planning Practice “According to Steve Insel, professional practices partner at the Los Angeles law firm of Jeffer, Mangels, Butler & Marmarow, ‘the best way for CPA firms to operate an insurance practice is to create a separate limited li
Related Questions
- Does each branch of an insurance agency, bank or securities firm that engages in the transaction of insurance have to be licensed or registered?
- Is it possible to share insurance commissions with the DSA member firm, or to pay a "referral fee" or a "finder’s fee?
- How many CPAs must be licensed for the firm to participate in non-variable insurance and annuity commissions?
