There is some room for creativity here, but it takes careful planning and execution, and there is only so much you can push it before crossing the line from aggressive but legal to reckless and punishable.GROUP 2: Tax strategies that do not belong on the EOY to-do listForm an S-corporation.

There are occasionally opportunities for grandfathering if there is evidence of legally established conversions that were done previously, but no permit records exist to show it was done. 

Myself I think if one wants to get into real estate in CA you get into the bizz you get licensed so you can legally collect fee's you put in the hard work like most wholesalers have to now..

Clear communication and legal safeguards are essential for a successful partnership.

I'd have them sign my own lease on renewal and I'd make sure I had enough information on them so I can go after them if a legal issue arises such as employer and other similar data. 

Keeping your license and avoiding any legal issues is probably worth more than this one transaction.

I'm saying that if you had the option of paying taxes on $50K or $21K, legally, all things being equal, which one would you pick? 

This is why I stress the importance of knowing the laws and the strength of the legal system before investing in a particular market.

I only ask because the main purpose of an LLC is legal protection, and if you don't have a large amount of assets to protect, say less than $1M...you may be putting the cart before the house, and it may make more sense for you to focus more on finding and closing more deals.

Legal and ethical implications: Agents engaging in such practices may face:Legal consequencesLicensing penaltiesEthical violationsThese actions ultimately harm consumers by restricting options and potentially inflating costs.The new system, allowing buyers and their agents to negotiate commissions directly, promotes transparency and fair competition.