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If an individual who is ASPPA credentialled leaves a firm to start their own TPA Firm where they will only employ themselves bascially with a small book of clients, is there a state license you must obtain? Or do you just need the E & O insurance to cover you.

Posted
If an individual who is ASPPA credentialled leaves a firm to start their own TPA Firm where they will only employ themselves bascially with a small book of clients, is there a state license you must obtain? Or do you just need the E & O insurance to cover you.

I know several that have done it without a state license, but it might depend on the requirements of your state.

E&O is not a requirement; you'll have to decide whether it makes sense for you.

  • 2 weeks later...
Posted

Be careful about sales tax. I know WV has come after some TPA firms claiming that they were not providing "professional" service and therefore were subject to sales tax.

The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.

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