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Thanks for your comment Keith Karrenberg, have a nice day.
- Dalton Kaaz, Staff Member
up guys my name is darren williams and welcome to vlog seven so today i want to discuss with you guys why as a real estate agent you should have an llc but before we jump into that please take a moment to like and subscribe to this video i really appreciate it so go ahead do that right now i give you five seconds okay so back to what we're discussing today why you need an llc as a real estate agent as you know most if not all real estate agents are independent contractors which means all of our earnings are 100 commission base if you don't produce you don't need you are a small business and you should set yourself up like one and the easiest way for real estate agents such as myself to do this is to form a single member llc now i just did this last month so this is not something i'm preaching to everybody i meet i'm sharing information that i just found out recently with you guys so what is an llc an llc first of all stands for unlimited liability company a limited liability company is a u.s specific form of a private help limited company it is a business structure that can combine the past taxation of a partnership or sole proprietorship with the limited liability of the corporation so what does that mean simply put all the money that your business generates that you generate as a real estate agent will pass through directly to you as business income and one of the benefits that this provides is that you won't be taxed federally at the corporate level but that's your individual income tax rate which is awesome um another benefit is what's called pass-through taxation which we just read a moment ago in the definition of an llc so what is pass through taxation this means that the business profits will pass through to its members to be reported on their personal tax returns all profits only tax once at each member's individual income tax rate so that's just something we just mentioned earlier again faster just simply means altering capacity to you you can tax the individual not as a company another flexibility that an llc will provide you as a real estate agent is being able to select yourself to be taxed as an s corporation which means the irs can save you money on self-employment taxes which is very important because you are self-employed as a real estate agent and you want to save taxes as much as you can so you don't get audited every year fun fact real estate agents are the most audited individuals in the united states it's crazy right another benefit is separating business finances personal finances most real estate agents made this mistake your first year by co-mingling the money that they earned from other rentals or sales or their personal finances and putting business expenses such as uber to an appointment on your credit card or your debit card and you want to keep those things separate again for tax benefits at the end of the year because you want to be able to legitimately write off a lot of things so it's best to have an llc and then a business bank account so you can separate those finances which is another benefit once you create yourself as an entity to be able to do these things so what are you going to do today one you're going to like this video again and subscribe again and share it to your friends and family two you're gonna go create an llc today if you just got your real estate license you should definitely do that before you start any transaction if you have your license for a year or more now and you haven't set yourself up at the telos you should definitely take time to do that and where you can go to do that is your state's local government website if you're in new york city you can go to business.ny.gov to set up your llc it's only going to cost you 200 bucks and it's worth the investment thank yourself later when you start making bad money as a real estate agent or you can go to websites such as legalzoom this is not an advertisement for them i wish it wasn't because but this is not that so that is an easy way for you to set up an llc trust me you will thank yourself later in the future once you do that and it also makes you just look more professional as a real estate agent as you have your stuff together and people do wonders for your business in the near future and i just learned this recently so i just wanted to share that with you guys so if you're a real estate agent and you're watching this video please leave a comment below if you have any questions about foreman llc or if it's better to set up your llc in another state that you don't live in for other tax purposes or whatnot just leave me a comment below and i'm gonna go do some real work now vlog
Thanks Lyndon your participation is very much appreciated
- Dalton Kaaz
About the author
I've studied hydraulics at King University in Bristol and I am an expert in cryptanalysis. I usually feel bewildered. My previous job was border patrol agent I held this position for 10 years, I love talking about volleyball and acroyoga. Huge fan of Russell Simmons I practice parasailing and collect insert cards.
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