Starting a TPA

[Guest Frank Pearce]

I am considering starting a small TPA out of my house. Does anyone have any advice that may be useful? Do I need any sort of license? I am planning on going after small plans, how much revenue can I expect them to generate? How long before I can expect the business to be profitable? Should I try to ally myself with a broker? Any help would be greatly appreciated.

[Lorraine Dorsa]

I made a presentation at a Tennessee Society of CPAs re getting into the pension business. I sketched out some costs for starting up and operating a firm--about $100,000 in start up costs and an annual ongoing costs of about $150,000. If you would like a copy of my notes (I do not have a formal handout), drop me a line at ldorsa@lda-fcpa.com.

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