LLC And Liscenced Agents
2 questions for the board.
My wife and I are planning on doing a series of flips to build equity towards long term cashflow properties.
I just filed my Articles of Organization for an LLC. My wife was listed as a second member, however she is a liscenced R.E. Agent, and I was told this may not be a good thing because of the liability which may be incurred by her broker. Any thoughts on this?
Secondly... What type of Tax entity would be best for this strategy? I would like to avoid a full blown corporation at this point. If there are multiple members of the LLC, what entity do I file the SS-4 Form under?
You really need to see your attorney and CPA. I am assuming that some members of your company are entities. How to structure your members and LLC depends on too many variables and personal goals to give an adequate answer on this board.
Appreciate the concern, however, there is no other entity regarding my wifes agency relationship, she is merely a liscenced agent at this point, with no legal entity as a shield.
I plan to contact my CPA, but was hoping for some general advice first.
Your RE Agent spouse has either 2 or 3 regulatory authorities she must be aware of, and whose rules she must follow to avoid trouble:
1. State RE Commission
2. Her RE Broker
3. MLS rules, if she's MLS member.
All agents & brokers are subject to RE Commission's rules, which agent needs to know or learn.
Broker makes the rules in his/her shop, and they may be much tighter than RE Commission, so first thing the Agent should do is talk to her broker to see what he/she wants. That's the law in that broker's shop.
MLS rules are generally a good bit tougher than RE Commision's, and if your wife is MLS, she needs to know them.