Real Estate agent incorporate as LLC? Feasible?

[Peter Fokas]

My wife is planning on becoming real estate agent part time in the beginning. Seems like if she incorporates as an LLC it may help limit liability and also introduce tax benefits. Is it worth it?

[Steven Hamilton II]

Originally posted by @Peter Fokas:

My wife is planning on becoming real estate agent part time in the beginning. Seems like if she incorporates as an LLC it may help limit liability and also introduce tax benefits. Is it worth it?

@Peter Fokas,

Unless she is becoming an independent broker that will not be possible. She would have to be taxed as a sole proprietor unless she is a managing broker. The reason is RE agent income is "Statutory employee" income. Basically they are working underneath someone else and paid for what they produce. If she had agents below her that were working for her that could be another story but case law, puts a standalone agent working under a broker as a Schedule C.