Commissions with LLC

[Latoya Pryor]

Hello

Does anyone know if it's beneficial receive commission pay as a realtor to your LLC? Any tax benefits? This would of course be based on the LLC being formed through the state for real estate transactions. Any help or advice is greatly appreciated.

[Bruce Lynn]

I think for most agents LLC doesn't probably make sense. If anything it complicates things and costs you more money. I'm thinking most agents don't have LLC. Maybe that is one of your interview questions.

If you are very top producer there can be some advantages, like employing your kids, SEPs or retirement plans and maybe if you have a big team some shield of liability if you set it up right and practice what your attorney teaches you to do to keep everything separate.

[Latoya Pryor]

Quote from @Bruce Lynn:

I think for most agents LLC doesn't probably make sense. If anything it complicates things and costs you more money. I'm thinking most agents don't have LLC. Maybe that is one of your interview questions.

If you are very top producer there can be some advantages, like employing your kids, SEPs or retirement plans and maybe if you have a big team some shield of liability if you set it up right and practice what your attorney teaches you to do to keep everything separate.

 Thanks for the tip!