S Corp, LLC? For Realtor

[George Adkins]

Hey hey! I am a new Realtor in the Bay Area, California. I have heard that it is good to get a LLC or S Corp as a realtor. Currently, I have neither and I need to get that changed. So I was wondering if anyone had any advice on the benefits of either option and which one I should get. Thanks!

[Russell Brazil]

Many people suggest this, but the tax court has disallowed this structure for agents starting a few years ago. Fleischer v IRS I think. The Fleischer case specifically has to do with commission based jobs in real estate and insurance.