Realtor & Investor LLC

[Mike Iafrati]

Hello All,

I am a licensed Realtor of 2 years with limited experience. I am also a RE investor newbie who is evaluating multi-families as I write this post. My question to anyone who wants to answer is this... Would it make sense for me to start an LLC which incorporates both my entities as a Realtor and an investor? I never started one when I got my license originally but I plan to do so now. Just wasn't sure if it would be smarter to separate the two and have one to protect my assets as an Investor? Any input would be appreciated.

[Steve Vaughan]

Originally posted by @Mike Iafrati:

Hello All,

Would it make sense for me to start an LLC which incorporates both my entities as a Realtor and an investor? I never started one when I got my license originally but I plan to do so now. Just wasn't sure if it would be smarter to separate the two and have one to protect my assets as an Investor? Any input would be appreciated.

After consulting professionals, I have different entities for different income types/business purposes. 

Do not comingle income types - active (realtor/job) income needs it's own, passive (rental) income it's own.  That's like rule 1 to me.  

Consider using an s-corp or having an LLC taxed as an s-corp for active/job/management income after consulting with a quality tax pro. My mgt/consulting/lending/wholesaling, etc entity type is an s-corp, but I wanted defined benefit retirement plan options. YMMV.

I personally only buy commercial assets with LLCs, not little houses, but mainly wanted to advise you not to combime income types and/or different business purposes within the same entity.