Getting incorporated

[andykatsev]

Does anybody know if it is worth forming a corporation as a Realtor or is better to stay an independent contractor.

Thanks

Andy

[Cash Home Buyers _ com]

I think it depends on whether or not you are a broker or under someone else. Also check with your real estate commission, as they tend to have different attitudes on the subject.

If you are a broker, and working directly for yourself then it may make sense to become a S-corporation. A S-corporation allows you to divide your income into earned and non-earned. Your non-earned income is not subject to FICA, which being self-employed, puts it at over 15%.

I'm not an accountant or lawyer, so ignore everything I just wrote and ask one.

Scott