Updated over 7 years ago on . Most recent reply
To LLC or Not as a RE Agent
Hello BP community,
I am curious to know how many real estate agents form an LLC to receive their commission check from their broker when closing deals? What are the benefits/disadvantages of owning an LLC compared to receiving the commission directly through your name at the end of the year as a 1099?
Also if I was to go the LLC route, how do I end up paying myself from the LLC to my name? Just wondering what other RE agents are doing.
Thanks!
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Natalie Kolodij
Tax & Financial Services
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@Michael Ablan none.
An LLC without any elections is literally taxed exactly the same way a sole prop would be.
Legal/Asset protection benefit only.
Kolodij Tax & Consulting