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Jim Bailey
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Can a broker pay an agent through the agent's LLC?

Jim Bailey
Posted Jan 16 2019, 13:14

Does anyone do this in order to save on self employment taxes?

A few relevant statutes (that dont actually seem that relevant once you pick them apart) -->

TRELA §1101.651(b)

https://codes.findlaw.com/tx/occupations-code/occ-...

(a) A licensed broker may not pay a commission to or otherwise compensate a person directly or indirectly for performing an act of a broker unless the person is:

(1) a license holder

...so they can pay indirectly.. through the llc...

. [TRELA §1101.355(c)]

(c) A business entity that receives compensation on behalf of a license holder must be licensed as a broker under this chapter.

...right... that is the friggin broker..  no one can get compensation unless through a broker...

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