Getting Commissions Paid to an LLC as a Texas Actual Property Agent | Central Metro Realty

As an actual property agent in Texas, getting paid commissions by means of your individual LLC generally is a game-changer. For years, brokers have been in search of a technique to obtain their commissions by means of their very own enterprise entity, however the guidelines and rules have made it troublesome. Nonetheless, a brand new rule coming into impact in January 2024 is ready to alter all of that.

At Central Metro Realty, we have been round for 16 years, and I’ve had brokers asking about getting paid by means of their very own LLC because the starting. It is at all times been a problem as a result of as a dealer, I can solely pay brokers instantly, not their LLC. However now, with this new rule, brokers can register their very own LLC and use it solely for accepting commissions. It is a large win for brokers, because it not solely makes the method cleaner for tax functions but additionally supplies important tax benefits.

The distinction between registration and a license in your LLC is essential to grasp. Whereas your LLC does not want a license to simply accept commissions, it is important to know the implications of this setup for tax and authorized functions. It is at all times greatest to seek the advice of with a CPA or legal professional to find out one of the best match in your particular scenario.

For me, personally, I’ve discovered that taking an S election for my LLC and working as an S corp works greatest for my enterprise. This setup permits me to pay myself an inexpensive wage and benefit from tax financial savings by avoiding self-employment tax on the corporate’s earnings. The leftover funds after paying myself a wage additionally include tax benefits, making it a wise alternative for my enterprise.

This new rule is a game-changer for actual property brokers in Texas, and I am thrilled that the Texas Actual Property Fee (TREC) has made it simpler for brokers to function by means of their very own LLCs. It is an amazing alternative for brokers to streamline their funds, maximize tax advantages, and take management of their earnings.

In case you have any questions on this new rule or the way it could apply to your scenario, be at liberty to achieve out to us at Central Metro Realty. We’re right here that will help you navigate these modifications and profit from this thrilling alternative.

So, in the event you’re an actual property agent in Texas, do not miss out on this implausible alternative to receives a commission commissions by means of your individual LLC. It is a game-changer, and I am excited to see the way it advantages brokers throughout the state. Thanks for watching, and be at liberty to achieve out when you’ve got any questions.