May 19, 2007 at 12:00 am #183681
I am a Real Estate broker in NYC and am thinking of forming an s-corp or LLC. I am an independent contractor/sole proprietor but working for a large RE company. Here’s what I have heard are the advantages; less taxes, if the corporation gets audited I will have no personal liability less chances of an audit…Some seem to say this is wise others that the tax savings are small at my level of income, s corps require a lot of paper work. This may not be appropriate for the site but thought some of you may have some thoughts on this.May 19, 2007 at 10:15 pm #183682DavidCMurrayParticipant
Just pay your taxes like the rest of us, you bottom-feeding, lowlife, chisling piker.
(No offense intended . . 😉May 19, 2007 at 10:48 pm #183683HuffnerBMember
Be nice, David. It’s not his fault at all…it’s the Bush-Greenspan-post 9-11 capitalistic rich-get-richer administration that’s encouraging this kind of irresponsible tax-minimizing behavior.
:).May 20, 2007 at 10:22 am #183684cindycMember
Instead of paying our taxes to the IRS on 4/15 we just made it out to Halliburton.May 20, 2007 at 10:50 am #183685
Believe me I pay!!!May 20, 2007 at 11:49 am #183686maravillaMember
ROTFLMAO!!! Right on!!May 20, 2007 at 12:14 pm #183687GringoTicoMember
Don’t listen to all those armchair accountants Lotus. They’re just jealous. Especially that MACMurrey guy – always giving bad advise and mouthing off! Probably still green with envy as a result of your GQ pic posting. Maybe you would have been better served with a less flattering representation.
Seriously though, I’ll give you gratis that for which I paid big bucks to a crack Real Estate Tax Consultant.
Each property you purchase should be placed in its own LLC with you as a sole owner. This limits liability, provides a layer of anonymity (the agent can be the management company), offers the option of selling either the real estate or the LLC, allows you to truthfully tell a Tenant that you personally are not the owner (he’s a real $&@#!), and enables you, as a broker, to take a commission on the purchase or sale. You can also transfer personal ownership to one of your sole proprietor LLCs without having to pay sales tax again.
A brokerage firm is also best created as an LLC.
A management company is best created as an S-Corp.
You’ll still need to consult with a professional in NY, as State Law may differ. Furthermore, IRS rules and administrative procedures can change from one day to the next, and these professionals are the only ones that really have a handle on it.May 20, 2007 at 1:40 pm #183688
GT I figured you would have something to say on this, but I seek different council. I will not be buying or selling property for myself. But as an associate broker for a RE company in NYC is it worth setting up an s-corp or LLC and have my company pay my commissions through the corporation. I don’t need protection from lawsuits but would seek minimization of taxes etc…
Regarding the picture I think you’re right, however in real life you may be dissapointed!
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