In NM, where I live, property managers have to have a broker's license. I assume this is not the case if you manage your own property. But what if I manage the property for the LLC that I am a member of?
Also, do I have to keep tenant security deposits and last month's rent in a separate trust account? Would the answer to this question change if I owned the condos in my own name?
You don't need a brokers license to manage your own but if you want to manage others then you need to obtain a license.
I need a license to manage an LLC's properties, even if I am a manager of that LLC?
You do not need a license if you are managing property you own.
You need a license if you are doing third party management and not a salaried employee.
I'm sure this is true in all states
Let's say the LLC has revenue of 100k, and it pays me 10% to manage the properties. If I am a salaried employee, then the LLC pays 7.5% employment tax, and I pay another 7.5%. That's $1500 extra tax we pay, not including gross receipts tax. If I choose to get a realtors license instead, about how much would that cost me to acquire and maintain each year?
If I choose not to do either, would it be easier for the veil of my LLC to be pierced, because I am managing the property myself, without hiring myself as a property manager?
It looks like having the LLC is going to cost me thousands each year. Is it really worth it?
As long as you are managing your own property you are good to go! When you operate others peoples property for profit you need a license ;)
*no legal advise provided!
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