Business formation / marketing questions

[jimday1982]

Do new real estate agents generally set up a legal business entity when they come on board with a broker? If so, what type is generally the way to go? I would assume an LLC for the asset protection.

The reason I ask is because I really want to create a brand for myself when I begin selling to help distinguish myself and the services I'll offer to my clients...and of course want to be completely legit from a legal standpoint.

Do any of you have related experience with "branding" yourself and creating your own business?

Looking forward to your thoughts and comments!

[TJ2007]

Without a doubt you must brand 'Yourself'! Most of the top agents really push their name & then create their own team & logo, website etc and possibly oneday move out on there own as a broker with a name that everyone already knows.

As far as an LLC goes while working under another broker - you'll have to check your state laws, but I believe the majority of states will not allow this as you are licensed as an individual and your commission needs to be paid to you as an individual.

From a tax point of view, as a self employed person you already have many tax advantages, there may be a few more if you had the extra layer an LLC, especially for marketing expenses but then again every CPA will tell you a different story.

As to Liability - that's what E&O insurance is for :), make sure your company covers you!