Wholesaling - Fees collected in your name or company?

[Cheryl Dwyer]

I am new to wholesaling & starting my business, I fully intend to form a LLC for my real estate business which will include a rehab eventually. I know each deal will be different but until you have formed the LLC, can you collect the fees in your name only or is that simply not recommended? I can afford to set the LLC up if I do it online here in MA but since I want my LLC to serve a couple of purposes I would rather an attorney review it first which then I know I run into the higher costs. Thanks and I am enjoying all the posts - it's such valuable education!

[Michael Pilarski]

Cheryl,

I'm new to this too (I haven't done any deals yet, but looking forward to it.) I was in a REI class given by Vena Jones-Cox who has been in the business since '89, and she said that if you're only doing one or two a year you can collect them in your name. She highly recommended doing it under your LLC if you plan on doing this a lot. The reason she said is, after so many, the IRS considers you a broker and your tax bracket can/will change. I'd talk to your accountant first and see what they would suggest. I hope that helps.