Can Broker pay my LLC commissions

[Craig Myers]

I have a team. In Virginia a team requires a business entity license, which I have in the form of an LLC. The LLC is associated with my broker and I am a member of the team. Can my broker pay my commissions to the LLC and then I take a salary or disbursement from the LLC or S-Corp?

[Russell Brazil]

Fleischer v Commissioner disallowed personal service businesses from using s-corps to save on self employment tax. Many tax professionals still advise to do this even though its been 5 years now since the Fleischer case.

As for the LLC, it depends on state law. In Virginia I believe that the LLC needs to hold the license/be registered with DPOR to receive a commission.