Opening up LLC for Real Estate Agent

[Matthew Shay]

I am interested to open up an LLC as a real estate agent in NY for tax purposes (thinking to elect the LLC as an S-corp for tax purposes.) Is anybody else doing this and is it worth it? Do you need to put your LLC name in your business cards and marketing materials and on the website or can I just use the name on a business bank acct and use my personal name on everything else?

Do the errors and omissions insurance cover the agent as well or only the broker?

Next question, if I have an LLC in Oklahoma (which is designated as a real estate buy and sell entity which already generated profits) can I use that entity for my real estate agent business and just file for a foreign LLC certificate? Its $50 more to do business in NY w/ a foreign entity but are there any advantages i.e. would I be exempt from the publishing requirement? Am I better off just creating a brand new LLC in NY?

[Michael Plaks]

Originally posted by @Matthew Shay:

@Michael Plaks Thanks for the info. I forgot to mention that I am also thinking about getting licensed as an Associate Broker. Does that make a difference for the S-corp benefits or would it only be if I was a managing broker (managing an agency or an office)?

The difference would be if you have other people working in your business, which is why I mentioned being a broker.

If all your income is your personal commissions, you can't say with a straight face that some of that was NOT compensation for your services. Different story if you have agents working for you.