Hey Stephen, I know this was a while ago, but are you still in the business?

For structuring your business, consider whether you actually need an LLC or if umbrella insurance might be a simpler alternative.

Quote from @Matthew Paul: I understand how businesses work.

Hey all,Just wanted to introduce myself - bought a duplex in Los Feliz over the summer with a few business partners and will be renovating the property while living there.

Might want to tuck that (and your TWO years of experience) back in.I guess if you consider doing 80% MORE investor business in 2024 than I did in 2023 "slow", okay then... ha ha ha.But hey - if people like you insist on being a complete jerk here, showing everyone exactly who they are, as Mel Robbins says, I'll "Let them".Who are you, again? 

Do you believe it will now be more cost effective to hold a license or do you believe the expenses will go up with what I assume will be a flight from the business by low producing real estate agents? 

@Eric E.UBIT only comes into play in an IRA on leveraged real estate and running an active business.

See responses to your questions below: Correct, California is uniqueTo qualify for REPS you need to meet a number of criteria, including (but STRs that meet IRS criteria generally don't need REPS to leverage tax benefits): More than 50 percent of his/her time working in real property businesses; AND, More than 750 hours of service during the year.

One thing I wish I knew starting out was the true overhead of running a RE business it can be pricey if you don't run your numbers right.

A standard "business owner's policy" is fine -- it covers the building, commercial general liability, and ideally, loss of rent.