One of the most misunderstood questions that we see from real estate agents and brokers has to be "How do I form an LLC?"
But, why is this such a confusing question? Because most of the time, an LLC may not even be the correct entity to form!
Given the fact that over 85% of small businesses (and real estate agents) start as Sole Proprietors, and many agents find out that their single-member LLC entity is disregarded for tax purposes - only after they've formed it - we thought it wise to create a simple illustration to explain the differences between legal entities.
IMPORTANT: You should ALWAYS speak with a CPA and/or attorney before deciding to choose a legal structure or form a legal entity.
But how do I form an entity on my own?
If you've already spoken with a tax professional or are dead-set on disregarding our advice, here are some simple ways to form a legal entity online.
File with the IRS and State yourself