LLC vs. S-Corp for Realtors: Pay Yourself the Smart Way

Many agents operate as sole proprietors, but forming an LLC or electing S-Corp status can improve both liability protection and tax efficiency.

LLC Advantages:

• Limited liability and professional legitimacy.

• Simpler setup and flexible ownership.

S-Corp Advantages:

• Ability to pay yourself a reasonable salary while taking the rest as distributions.

• Reduces self-employment tax on a portion of income.

When to Consider:

• Consistent annual net income above $75,000.

• Desire to separate business and personal finances.

💡 Key Takeaway: The right structure can save thousands annually while protecting your personal assets.

⚠️ This blog is for informational purposes only and does not constitute tax, legal, or accounting advice. Please consult your CPA for guidance specific to your situation.