Wednesday, February 22, 2006

Agent Alert! LLC vs. Sole Prop.

This topic isn't one that's discussed much, at least not to my knowledge. Most writers are so jazzed to hear an agent offer representation that important details, like what that agent's business is established as, don't even cross their minds.

I'm here to impart the advice that it is EXTREMELY IMPORTANT that agents be established as businesses (separate entity from their personal) and registered as an LLC, Limited Liability Corporation. Reason being, if the agent's set up as a sole proprietor and they kick the bucket, any money owed to you at that time is now tied up in that agent's estate. Happy Probating! The same is true, by the way, if the agent should divorce, be sued, etc, because your dealing with their personal finances.

I thought to post about this now because it's happening to a friend of mine and it's become one big wrangled mess! They'd been together a number of years, but unfortunately, this is one conversation they never had.

Thank goodness my agent is structured as an LLC. Is yours? If you don't know, I strongly encourage you to find out. And remember, this would be important to your estate should you pre-decease your agent.

Find out. Have the talk with your agent. If he/she isn't an LLC, strongly recommend they become one. You don't want to have to wait through the process of probate to get your money....your heirs won't want to either, should you pre-decease your agent.


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