I was told that a Real Estate Broker cannot be an S-Corp because of the nature of their profession. My client wants to know if he can reduce his taxes by electing a different Business Entity from a Sole P. What, if any, entity choices does a Real Estate Broker have? Would appreciate your thoughts on this question. Thank you.
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RE Broker
Up until 2004 NY RE Assoc Brokers could not be anything other than a1099 Sole proprietor. Since then NY changed the law. Check with your state to see if it has changed its law also.
Added... Any restriction would be State not Federal.Last edited by BOB W; 11-14-2006, 05:29 PM.This post is for discussion purposes only and should be verified with other sources before actual use.
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I am a RE Broker in Ohio and an S-Corp. Must be the State law prohibiting him or herComment
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Clarification...
Brokers can be Corporations but Associate Brokers ( 1099 employees/ subscontractors) couldn't in the past in NY, now then can.This post is for discussion purposes only and should be verified with other sources before actual use.
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In PA a RE liscencee can only receive compensation from his broker. If operating as a corporation, he would be compensated by the corp which is not allowed under PA liscencing law.. Check your state laws.Comment
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