incorporating - is it worth it for an agent?

waynelong · 05-10-2008, 05:43 AM

Realbiz - I think that is a pretty accurate explanation.

The largest benefit as I see it is the ability to pay yourself a salary and not have to pay self employment taxes on the remaining profits.

This can also improve your ability to finance personal purchases. It is tough to finance when you are self employed. If you are an employee of the corporation you are no longer self employed. Let the brokerage pay the corporation and then the corporation pays you a salary or salary plus a bonus.

Another advantage to being incorporated - in my opinion - is there is a much cleaner separation of personal and business expenses.

Combine these benefits with the liability protection and it is a no brainer - again in my opinion.

jseville · 05-10-2008, 05:59 AM

Your S Corp can buy property as well, pay for financial investments and the like so that you continue to fund retirement without earning that income as an individual that you then funnel into investments. No need to earn the income and get taxed on it so you can put into investments and then get taxed on it again later.

MikeNY · 05-10-2008, 06:14 AM

Quote:

Originally Posted by jseville

If you are making just $120,000 you could probably save a good $12,000-15,000 in lower taxes--S Corp. I incorporated a year ago easily and I work with a broker. I'm sure different states have diff laws. The goal is to spend as much as an S Corp and pay yourself as little as possible to be taxed on thereby saving a ton of money on personal taxes and self-employment taxes. Those of us making a LOT more than that who are not incorporated are throwing so much money away that it's a tragedy. Do everything you can to get incorporated and talk to a professional adviser right away about at what point of income it will be right for you.

Throwing away $10,000-25,000+ in taxes is wrong.

j

J, this is great info thanks. So basically I just need to speak to an accountant? and tell him I want to incorporate (S corp)?

Thanks!

waynelong · 05-10-2008, 06:30 AM

Your accountant can advise you on this but my accountant advised me to form an LLC and then elect to have it taxed as an S corp. I don't really know the advantages of that one way or the other. I am just telling you what I was advised to do by my accountant.

MikeNY · 05-10-2008, 06:31 AM

Ok thanks I will look into this.

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Does it get any worse?	peej9999	Ask An Agent	12	04-07-2008 12:08 PM
Email for buyers who have an agent	RonnieG	Increasing Conversion	5	03-10-2008 05:53 AM
Commission Rate for Buyers Agent with Out of State Realtor as my Buyer?	howard11792	Ask An Agent	12	02-24-2008 07:33 PM
Ft Worth - Arlington - Grand Prairie Leads	Dallas Broker	Real Estate Referrals	7	08-07-2007 07:53 PM
Need Agent in Lake Worth, FL	gibb1019	Real Estate Referrals	0	03-20-2006 05:55 PM

Real Estate Forums

Main Navigation

Charles Richey Fund

Popular Services

IDX Coverage Areas

Spiders Welcome