Updated 3 months ago on . Most recent reply
Getting an LLC as an agent
I am fairly new to the real estate space, and am considering becoming an agent. My understanding is as an agent with a company (Century 21 for example), I am still considered 1099. Would it be wise at get a LLC? If it's possible, how exactly would that work while being with a company?
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This topic is relevant as I just had conversation with a CPA and his client yesterday with respect to setting up an LLC and making an S-election to save on self-employment taxes. This client was located in NJ and told by a consulting firm that he should employ this strategy. The issue is that NJ among other states require a natural person rather than an entity to be paid, unless the agent is a broker in which case there are also some stipulations and some additional costs of doing business. In any case it's an issue of assignment of income which is prohibited. I'm deviating a little from the original post but saw some the other commentary which is great and wanted to expand on it a bit.