It’s not what you make – it’s what you keep! Most of our videos here on Broker School are all about being a broker and running a real estate office, but we often get questions from agents as well and this is something that you can use to help your agents be more profitable and keep more of what they earn without it costing your company.
Here are some reasons on why you would want to incorporate:
- Tax advantages – track your write offs. Most agents miss half of their write-offs.
- Greater control over your finances.
- Medical insurance – get your own group plan.
- Children/family as employees – put them to work! Shift income.
- Control over BPO and other income. This includes rental fees and those that don’t require a brokerage license. Check your local laws.
This is based on my experience. I’m not an expert on accounting or tax law. Ask your trusted financial or tax advisors about this conversation we are having today. You’ll want to check state laws where you have your license(s).
Think about making yourself an employee. Not a bad deal. Costs you the same, but now if something happens to you you can get Workman’s Comp and unemployment.
Most of you are paying way too much in taxes. Invest the $500 to learn more and set this up, get QuickBooks. It will be a lot less hassle at the end of the year, save you time and headaches.