S-Corps for Real Estate Agents

S-Corp for Real Estate Agents

Setting up a S-Corp it allows us to limit the amount of self-employment you have to pay each year.

We are able to do this by paying some of your net income through payroll (subjected to SE tax) and the rest in distributions not subjected to SE tax.

This way you wear two hats:

• Owner K1 not subjected to SE tax
• Worker subjected to payroll tax (W-2)

How does it work?

• Need to Set Up Company With State of Florida
• Need to Change Your RE License – Form # DBPR RE 16
• S-Corp Election
• Separate Bank Account and Records
• Separate Tax Return (1120S) – K1 flows to individual return
• Payroll For All Workers – “Fair and Reasonable Salary”

Example of how you can save