Investment firm structure

[Nicholas Burch]

One day I hope to own or be a co-owner of a real estate investment firm. I have noticed that some investment firms do not have salaried employees, their investment Analysts/Underwriters are 1099. Other firms have all of their employees under salary. Is this due to portfolio size or business structure or some other factors I have not considered?

[Nicholas Burch]

Quote from @Jeff Stein:

The structure of the business is very dependent on what the business does and wants to accomplish. Real estate properties are best held in an LLC rather then a C-corp. or S-corp. When it comes to employees vs contractors I attached the governments definition below.

https://www.acf.hhs.gov/css/tr...

I am familiar with the differences between those employment types. Nonetheless, you are right, the business structure does differ depending on the purpose.

Since the making of this post, I've come to understand B2B preferred equity ventures, JV with the general public, and syndications. Some firms do all the above.

It's hard for me to focus on a niche without looking at the numbers. What are your thoughts?