Insurance agencies
Books and taxes for captive insurance agents.
One carrier's commission schedule, a new-agent subsidy that phases out, renewal commission on the book you built, and staff paid to run the office. Gus sorts all of it, an accountant checks every transaction, and you get one number a month.
- From $197 a month
- An accountant on every transaction
- Cancel whenever
May came in at $9,700. The carrier's new-agent subsidy dropped again this month, right on schedule, so I flagged it instead of letting it look like a slow month.
- Allstate commission depositNew business commission
- Allstate persistency depositRenewal commission
- Front desk payrollOffice staff wages
- Carrier-branded office leaseOffice and signage
- Property and casualty license renewalLicensing and E&O
Why your books are different
A captive agent's books go wrong in the same four places.
A generalist bookkeeper treats every deposit from the carrier the same way. Your income is really three different things: a new-agent subsidy that steps down, commission on what you sell, and renewal income on a book the carrier structures differently than an independent agency's. Mixed together, you cannot see which one is actually carrying the office.
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1
The new-agent subsidy phases out unevenly
Many carriers pay a ramp-up subsidy for a new captive agent's first few years that steps down on a schedule. If that subsidy is booked the same as commission, a normal step-down looks like the business is failing.
What we doKeeps the subsidy on its own line so a scheduled step-down reads as expected, not as a warning sign. -
2
Renewal income does not work like an independent agency's
A captive carrier often structures renewal and persistency pay differently than an independent agency's trail commission, sometimes tied to office-wide retention, not just your own book.
What we doTracks renewal and persistency pay as its own category, matched to how your specific carrier structures it. -
3
Office staff wages hide the real cost of the office
A captive office often runs front desk and CSR staff who service claims and renewals for one carrier's products. Lumped into general payroll, you lose sight of what the office actually costs to run against what it brings in.
What we doKeeps office staff wages on their own line against commission, so you can see the office's real cost of doing business. -
4
Carrier-required branding costs get buried in supplies
Carrier-branded signage, office build-out, and marketing materials required by the agreement are real costs, but filed under supplies they disappear into the noise instead of showing up as what they are.
What we doLogs carrier-required branding and office costs on their own line, so they show up clearly when it is time to plan the year.
Your categories
The categories Gus keeps for a captive agent.
Set up once for your carrier's pay structure and what the office spends. You never pick a category. He does, and an accountant checks it.
Money in
- New business commissionPaid on the carrier's schedule for policies you write.
- Renewal and persistency payKept apart from new business, matched to how your carrier structures it.
- New-agent subsidyThe ramp-up support many carriers pay in the early years, tracked so its step-down is expected, not alarming.
- Bonus and contest incomeSales contests and production bonuses the carrier runs from time to time.
Money out
- Office staff wagesFront desk and CSR pay for staff who service the book.
- Office and signageCarrier-required branding, lease, and build-out costs.
- Licensing and E&OState license, appointment, and errors and omissions coverage.
- Marketing and local sponsorshipsApproved local marketing spend and community sponsorships.
- Continuing educationRequired training and license renewal courses.
What we watch for you
- Subsidy versus commission
How much of the month is ramp-up support versus what you actually sold, so you know your real trajectory.
- Office cost share
Staff and office costs against total income, so you can see whether the office is carrying its weight.
- Renewal retention
How much of last year's book stuck around, since that drives steady future income.
- The set-aside
What you will owe, tracked every month, so April is a number you already knew.
Ask Gus
Things captive agents ask Gus.
Text him like you would text anybody. He answers in plain English, and when a question is above his pay grade, an accountant looks and gets back to you.
No, that is the scheduled step-down most carriers run for new agents. I kept it on its own line so you can see it dropping on plan, not as a sign of trouble.
Yes, and I already do. Her wages sit apart from your owner draw, so you can see what the office actually costs to run.
Usually. I logged it as an office cost the day it came through, and the accountant will confirm how it gets written off with your full year in view.
The tax side
The tax side of a captive agency.
Most of what goes wrong here is timing, a subsidy mistaken for regular income, staff wages mixed with the owner's own pay, a set-aside started too late.
What your return has to get right
Your accountant signs it, so it gets done right the first time.
- Self-employment tax and estimatesCaptive agents paid on commission rather than a W-2 pay self-employment tax at 15.3 percent up to the $184,500 wage base, usually in quarterly estimates on April 15, June 15, September 15, and January 15.
- The pass-through deductionMost captive agency owners can take up to 20 percent of qualified business income off their taxable income, though the benefit narrows above $201,750 single or $403,500 joint, so the accountant runs your exact number once the subsidy and commission are both counted.
- Office equipment write-offsOffice equipment and required signage bought for the business can usually be expensed the year you buy it, with bonus depreciation at 100 percent for property acquired after January 19, 2025.
- Staff payroll withholdingFront desk and CSR staff paid on payroll have their own withholding and reporting, separate from an owner's self-employment tax.
Deductions captive insurance agents miss
Your bookkeeper knows what to look for in your statements. You never have to.
- Errors and omissions insurance
- State license and appointment fees
- Continuing education courses
- Office lease and build-out costs
- Carrier-required signage
- Front desk and CSR payroll
- Local marketing and sponsorships
- Office supplies and equipment
- Phone and internet for the office
- Business insurance for the office space
General information about 2026 federal rules, not advice for your business. Your accountant looks at your actual numbers before anything gets filed.
All year, not just April
A captive agent's year, kept every month.
Your carrier sets the commission schedule. Gus keeps the books ready around it. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.
- January
Set up the year
Last year's return gets started, and you get a monthly set-aside so April is already handled.
- April
Return signed
Your return is filed and signed. No surprise bill, because the set-aside ran all year alongside your subsidy's scheduled step-down, not against it.
- July
Midyear look
Where you stand, what you will owe, and whether the subsidy step-down changed your real number.
- October
Before year's end
Gus looks at office equipment worth buying and anything worth doing before December.
What you get
What you pay depends on what your business needs, and it does not move after that, busy season or slow. No hourly bills, no surprise invoices, no setup fee.
Book a call- Monthly bookkeeping
Every transaction sorted into categories set up for captive insurance agents. You never categorize a thing.
- An accountant checks every transaction
Real review, every month, before your books close. Not a spot check.
- Your business tax return, filed
Prepared, reviewed, and signed by that same accountant every year.
- The monthly number
What you made, what you spent, what to set aside for taxes.
- Your own bookkeeper
A real person assigned to your business, in the app whenever you need them. No hold music.
- On your books all year
Every month, not just in April. Your team speaks up whenever something is worth your attention.
- Cancel any time
No contract. No cancellation call. Your books are yours.
Straight answers
Questions captive agents ask first.
Can Gus tell my new-agent subsidy apart from real commission?
Yes. The subsidy sits on its own line so its scheduled step-down does not read as a drop in real sales.
I only write with one carrier. Is that simpler for the books?
In some ways. There is one commission schedule to learn, but renewal, persistency, and subsidy pay still need to be kept apart, and Gus does that from the start.
Do I need to separate my own pay from my staff's wages?
Yes. Your draw as the owner and your staff's payroll are different things for tax purposes, and Gus keeps them on separate lines.
Can I deduct the branded office build-out my carrier required?
Usually. Required signage and office costs are logged as they show up, and the accountant confirms how they get written off.
My office runs on one bank account for everything. Is that a problem?
No. Send the statement. Gus sorts personal draws, staff payroll, and carrier deposits apart, and most agents know where they stand inside a week.
Is a real accountant checking my books?
Yes. You get your own bookkeeper, Gus does the first pass on every transaction, and an accountant checks every one before your month closes. That same accountant prepares, signs, and files your business return. Goatkeeper is not a CPA firm, and we never pretend a person looked when they did not.
What does it cost, and can I cancel?
It starts at $197 a month, depending on what your business needs. No setup fee, no hourly bills, no contract. Cancel any time from the app, and your books go with you.
More in insurance agencies
We keep books for the business next door too.
- Crop insurance agents
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- Group benefits brokers
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- Specialty insurance agencies (trucking, contractors)
- Commercial insurance brokers
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- Banner & large-format printers
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- Document shredding & records management
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- Exit planning advisors
What makes a bookkeeper worth paying for Every business we keep books for
Book a call
Pick a time. That's the whole signup.
Fifteen minutes with a real person on our team. They look at where your books are, tell you straight what it takes to get caught up, and get you set up on the spot if it fits.
- $197 a month to start
- An accountant on every transaction
- Cancel whenever