NAICS Code for Real Estate Investing & Best Practices

[Matthew Cabrera]

Hello!

I am a real estate agent new to real estate investing and need some advice -

1. Which NAICS code should I use for my activities?

- Residential purchases, remodel/repairs, and re-sale (flips). I'll typically contract work out, unless it's something I can handle myself

- Residential purchases to turn into rentals (12 months or longer)

I read a few posts and did some research, but I want to be sure I am selecting the right NAICS code. It appears both activities listed fall under different NAICS codes. Also, since I am an agent, not sure if I should select the one used for office of agents. I would hate for this to be an issue.

2. Regarding how to structure my business -

I do not have an LLC setup as an agent and just plan on purchasing properties under my investments LLC, then getting paid as myself for my commissions. However, it is likely that I will want to use my commissions to fund repairs, use as a down payment, or even cover expenses on these investment properties. I still plan on helping buyers and sellers purchase as well. What would be the best way to do this for tax purposes, liability, and breaks? I don't want to do anything wrong where I will get penalized later down the line.

Thank you all!