Any California agents have an S-corporation to avoid self employment taxes? I heard in California, agents are not allowed to form LLC's to then elect S-corp status. Is this true?

In OR and I have an S-Corp, but that has nothing to do with forming a LLC since it has a different purpose. LLCs are mostly pass thrus for income. So if half the income goes to a partner personally and the other half to a S-Corp partner, then no diff - I AM NOT A CPA OR TAX PROFESSIONAL ASK ONE BEFORE YOU DECIDE ANYTHING.

Reason I like S-Corps is you can bump the benefits (eg retirement contributions) as long as all employees are treated equally.  Hence if you give each max retirement contributions and gold-plate med insurance, this will reduce the W-2 each employee gets to figure income taxes.

@Steve Morris

Ya but I believe S-corps are not allowed for agents in California. They only allow it for brokers.

Well, that's a question of are you in real estate as a professional for income or as an investor.

Again, talk to a CPA.