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Knowledge for Gen Y's in Small Business Planning & Real Estate Law

Business Entities 101 – Real Estate Agents

Got your real estate license? Congrats! Now you get to figure out all of the stuff that goes along with being an agent.

Independent Contractor

In case you missed my post about employees versus independent contractor, here it is again.  Just a friendly reminder, you as an agent are an independent contractor. In case you forgot when you signed all your paperwork. So what does that actually mean? Well you are a sole proprietor in the eyes of the government. I get it, you don’t want to add another piece to your already messy puzzle. Which is fine…for now. I am not going to tell you that you HAVE to go create a business. But I am going to tell you that you should consider it, either for now or down the road once all your puzzle pieces are a little less messy.

Benefits of a Business Entity

OK, since the real reason anyone would think they may want to form some sort of business entity as a real estate agent is for the benefits to them. I will give you the benefits so you can make your well informed decision.

Down the road, when you have a team, you will want a business entity, plain and simple. The moment you bring others into your puzzle you need to make sure they realize they are part of your puzzle and in what capacity.

Errors & Omissions insurance held by your broker will only go so far if something problematic comes up with your name on it. Protecting your personal assets and your family from your business dealings is super important.

Other benefits depending on what entity you choose. Contact me today in order to discuss those more.

Drawbacks of a Business Entity

Benefits, of course, bring about drawbacks too. The drawbacks are really dependent on what entity you end up choosing.

One of the drawbacks, for some, might be the additional cost to create a business entity. One of the drawbacks for some might be the appearance of being non-personal. Although that really is just an excuse, you will not magically change and stop providing the amazing service to your clients.

 

So are you ready to get started on your new real estate business or are do you just want to chat with me about some of your options.  Guess what I can and willing to do either, you just have to reach out. I want your new license to be a benefit all the way. This post was a just a grazing of information that you should consider.

Also, keep an eye out for a quick guide to help you out more!

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