In this episode, Jeff discusses:
- Getting incorporated as a real estate agent
- The impact of most agents not realizing they are business owners now
- Setting up a PLLC
- Getting a debit card or a credit card for your business
Key Takeaways:
- As a real estate agent, becoming incorporated should be among your first actions after obtaining your license. Check with your state and the department of real estate in your location for their exact rules.
- Many agents don't have an LLC and don't think of themselves as businesses nowadays, which makes them commit a cardinal sin which is commingling funds and having a hard time separating business from personal expenses.
- You will have much more freedom with a professional limited liability company ("PLLC"). Make sure you hire a professional who is familiar with the rules to help you set this up.
- Get your business a debit or credit card at the same time. Personal credit cards are fine too so long as they are only used for business expenses.
“Setting up a PLLC can be done any time but all the money you've made prior to setting up that PLLC or notifying your broker and getting it set up correctly is all going to be filed under your name and social security number. So as you can see, it's better to get it set up before you start making money." — Jeff Hockett
Connect with Jeff:
Website:https://www.hocketttax.com/
Email: jeff@hocketttax.com
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