Should I set up an LLC for Real Estate commissions?

[Aytaj Vily]

Hello everyone! I recently passed the MD real estate exam and received my inactive license. I am in the process of connecting with a broker but before I finalize my paperwork with them, I was wondering if I should create an LLC and have the broker pay the commissions to the LLC. In addition, I also intend to pay my monthly broker and associations fees from the same business account.

Any advice or guidance is greatly appreciated!

[Russell Brazil]

It will drive up your costs, and not actually provide that much more protection. If you have an LLC, you will then have that as an additional tax return you will need to file. Additionally your brokers E&O insurance likely just covers induvial licensees and not corporate entities, so you will likely then need to purchase E&O insurance for the LLC. In Maryland you may also want to consider a PLLC.